Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and Products' fixed operating costs are 220,000 per year. Products' capital structure includes 55% debt and...

Extracted text: Zira Ltd sells mobile gadgets for 15 each. The gadgets have a variable cost of 4 per unit, and Products' fixed operating costs are 220,000 per year. Products' capital structure includes 55% debt and 45% equity. Annual interest expense is 25,000, and the tax rate is 35%. a. Calculate the break-even point in units. b. If the Products sells 25.000 units, calculate the firm's EBIT and net income.