(Break-even point and selling price)

Simple Metal Works, Inc. will manufacture and sell 190,000 units next year. Fixed costs will total $310,000, and variable costs will be 30 percent of sales.

a. The firm wants to achieve a level of earnings before interest and taxes of $260,000.

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).