Mathematics, 13.05.2021 04:30, maddieb1011

(Break-even point and selling price) Machongary Comp. will manufacture and sell 200.000 units next year. Fixed costs will total 250.000 $, and variable costs will be 45 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.

-Sales:

-Less:Variable costs (45% of sales):

-Revenues before fixed costs:

-Less: Fixed costs :

-EBIT: $240,000

Answers: 1

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(Break-even point and selling price) Machongary Comp. will manufacture and sell 200.000 units nex...