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Simple Metal Works, Inc. will manufacture and sell 200,000 units next year. Fixed costs will...

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Finance

Simple Metal Works, Inc. will manufacture and sell 200,000 units next year. Fixed costs will total $330,000,and variable costs will be 50 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 an analytical income statement to verify your solution to part (a).

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