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Breakeven point and selling price Simple Metal Works Inc will manufacture and sell 300000 units next year Fixed costs will total $350000 and variable costs will be 65 percent of sales

Breakeven point and selling price Simple Metal Works Inc will manufacture and sell 300000 units next year Fixed costs will total $350000 and variable costs will be 65 percent of sales

(Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed costs will total $350,000, and variable costs will be 65 percent of sales.

a. The firm wants to achieve a level of earnings before interest and taxes of $250,000. What selling price per unit is necessary to achieve this result?

b. Set up a pro forma income statement to verify your solution to part (a).

mahesh 27-Apr-2020

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