Question

please help me answer part a2 by 10pm tonight. thank you!!

Sunland Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. $34 Sales price Variable cost of goods sold Variable selling expenses Variable administrative expenses 10 9.0 3 Annual fixed expenses Overhead Selling expenses Administrative expenses $9.048,000 1.914,000 3,654,000 Sunland can produce 1,740,000 million cases a year. The projected net income for the coming year is expected to be $2,088,000 million. Sunland is subject to a 40% income tax rate. During the planning sessions, Sunland's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $174,000. All other costs and expenses are expected to remain the same. (a1) ✓ Your answer is correct. Calculate contribution margin per unit for the coming year. (Round contribution margin per unit to 2 decimal places, es. 0.38) Contribution margin per unit $ 10.50 e Textbook and Media Attempts: 1 of 3 used (a2) What amount of sales revenue will Sunland need to achieve in the coming year to earn the projected net income of $2.088,000 million? (Use the rounded contribution margin per unit calculated in the previous part to compute Sales Revenue Round answer to o decimal places, eg. 25,000.) $ Sales revenue

Answer 1

1-0.40 Answeri- Projected net income = $2088000 etter tox . Projected net income before tax = $2088000 $348 0000 Calculation of fixed cost overhead & gou8000 Selling expenses $ 1914ooo Administrative expenses = $3654000 + $ 174000 Total = 8 14 7 90000 Contribution = $10.50 (as per als Sales : 14790000+ 3480000. fixed cost + Profit contribution. 10.50 Sales Remnul u oooo case 1740000 x 834 = $59160000