IS-17A. (Break-even point and selling price) Gerry's Tool and Die Company will produce 200,000 units next year. All of this production will be sold as finished goods. Fixed costs will total S300,000. Variable costs for this firm are relatively predictable at 75 percent of sales.

a.ı If Gerry's Tool and Die wants to achieve an earnings before interest and taxes level ofˇ

$240,000 next year, at what price per unit must it sell its product?ˇ

b. Based on your answer to part (a), set up an analytical income statement that will verify your solution.