Simple Metal Works, Inc. will manufacture and sell 250,000 units next year. Fixed costs will total...

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Finance

Simple Metal Works, Inc. will manufacture and sell 250,000 unitsnext year. Fixed costs will total $330,000, and variable costs willbe 60 percent of sales.
a. The firm wants to achieve a level of earnings before interestand taxes of $250,000. What selling price per unit is necessary toachieve this? result?
b. Set up an analytical income statement to verify your solutionto part

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Number of Units the company wil sell next year 250000 units Fixed Costs 330000 Variable Costs 60 of Sales a The firm wants to achieve an EBIT of 250000 So EBIT Contribution Fixed Costs 250000 See Answer

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Simple Metal Works, Inc. will manufacture and sell 250,000 unitsnext year. Fixed costs will total $330,000, and variable costs willbe 60 percent of sales.a. The firm wants to achieve a level of earnings before interestand taxes of $250,000. What selling price per unit is necessary toachieve this? result?b. Set up an analytical income statement to verify your solutionto part