(Break-even point and selling price) Specialty Steel, Inc. will manufacture and sell 180,000 units next year. Fixed costs will total $290,000 , and variable costs will be 50 percent of sales.

a. The firm wants to achieve a level of earnings before interest and taxes of $240,000. What selling price per unit is necessary to achieve this result? b. Set up a pro forma income statement to verify your solution to part a.

a. What selling price per unit is necessary to achieve a level of earnings before interest and taxes of $240,000? (Round to three decimal places.)

b. Set up a pro forma income statement to verify your solution to part (Round up all items to the nearest dollar.)

Sales
Less: Variable costs (50% of sales)
Revenues before fixed costs
Less: Fixed costs
EBIT	$240,000