Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed costs will total $350,000,

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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).

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Foundations Of Finance

ISBN: 9780134083285

9th Edition

Authors: Arthur J. Keown, John H. Martin, J. William Petty

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