Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
3. (10 Points) Fever Pitch has a projected income statement this year of Sales $ 80,000 Cost of Sales 50,000 Gross Profit 30,000 10,000 Operating
3. (10 Points) Fever Pitch has a projected income statement this year of Sales $ 80,000 Cost of Sales 50,000 Gross Profit 30,000 10,000 Operating Expenses Operating Profit 20,000 Interest expense 3,000 Earnings before tax 17,000 Taxes 6,800 Profit after tax $ 10,200 However, the president of Fever Pitch is not happy with this forecast. She has told Fever Pitch managers she wants a profit of $12,500 for next year. Assume that the tax rate remains at 40%, operating costs keep the same proportion to sales, and interest will be unchanged. What sales goal must Fever Pitch reach to achieve the desired profit level
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started