Homework Answers
Calculation of required sales to earn net income 140,000in 2016
Required sales = Desired net income + Fixed cost / Contribution margin Ratio
=140,000+147000 / 100-30
=287000/70%
=410,000
b.
| Sales | 410,000 |
| Less; Variable cost [30%] | 123,000 |
| Contribution margin | 287,000 |
| Less: Fixed cost | 147,000 |
| Net income | 140,000 |
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