12-3 (Break- even point and selling price) Simple Metal Works, inc. will manufacture and sell 300,000units next year. Fixed costs eill total $350,000, 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 per unit is necessary to achieve this result.

b.Set up a pro forma income statement to verify your solution to part A.