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Please answer A and B (Break-even point and selling price) Specialty Steel, Inc. will manufacture and sell 250,000 units next year. Fixed costs will total
Please answer A and B
(Break-even point and selling price) Specialty Steel, Inc. will manufacture and sell 250,000 units next year. Fixed costs will total $320,000, and variable costs will be 50 percent of sales. a. The firm wants to achieve a level of earnings before interest and taxes of $290,000. 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 $290,000 ? $ (Round to three decimal places.)Step by Step Solution
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