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(Break-even point and selling price) Parks Casting Inc. will manufacture and sell
210,000 units next year. Fixed costs will total $300,000 and variable costs will be 50 percent of
sales.
a. The firm wants to achieve a level of earnings before interest and taxes of $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)