Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of

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Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of $140,000 during 2022. Its fixed costs are expected to be $56,000, and variable costs are expected to be 30% of sales. 


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Instructions 


a. Determine the required sales to meet the target operating income during 2022. 


b. Fill in the dollar amounts for the summary income statement for 2022 below based on your answer to part (a).

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Related Book For  book-img-for-question

Managerial Accounting Tools For Business Decision Making

ISBN: 9781119731825

6th Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

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