Based on the information above, what is the annual amount of earnings before interestand taxes (EBIT)?

Marsalis Products Inc. manufactures and sells batteries and cables for computers.

The latest information on the products and their costs is shown in the following table.

Note: 1 Fixedmanufacturing cost of S1.500,000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour.

Based on the information above, what is the annual amount of earnings before interestand taxes (EBIT)?
A . $1,460,000.
B. $2,920,000.
C. $2,960.000.
D. $4,420,000.

View Answer

Answer: A