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).
Related Book For
Foundations of Finance
ISBN: 978-0134084015
9th edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
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