Question

​(​Break-even point and selling price​) Simple Metal​ Works, Inc. will manufacture and sell 240 comma 000 units next year. Fixed costs will total ​$280 comma 000 ​, and variable costs will be 30 percent of sales. a. The firm wants to achieve a level of earnings before interest and taxes of ​$260 comma 000 . What selling price per unit is necessary to achieve this​ result? b. Set up an analytical income statement to verify your solution to part ​(a​).

Answer 1