Compute the break-even point in units

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Problem

The Sterling Tire Company's income statement for 20X1 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (23,000 tires at $66 each) $ 1,518,000 Variable costs (23,000 tires at $33) 759,000 Fixed costs 430,000 Earnings before interest and taxes (EBIT) $ 329,000 Interest expense 51,500 Earnings before taxes (EBT) $ 277,500 Income tax expense (30%) 83,250 Earnings after taxes (EAT) $ 194,250. Get the instant assignment help. Compute the break-even point in units.

Reference no: EM133923294

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