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Specialty Steel Inc. will manufacture and sell 180,000 units next year. Fixed costs will total $290,000, and variable costs will be 55 percent of sales.
Specialty Steel Inc. will manufacture and sell 180,000 units next year. Fixed costs will total $290,000, and variable costs will be 55 percent of sales.
A. The firm wants to achieve a level of earnings before interest and taxes of $270,000. 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).
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