What selling price per unit is necessary

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Reference no: EM132028050

Question: Parks Castings Inc. will manufacture and sell 170,000 units next year. Fixed costs will total $250,000, and variable costs will be 40 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).

Reference no: EM132028050

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