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Based on the cost and revenue structure on the XYZ income statement, XYZ is earning a net income equal to 12.5% ($50,000/$400,000) of sales. In

Based on the cost and revenue structure on the XYZ income statement, XYZ is earning a net income equal to 12.5% ($50,000/$400,000) of sales. In order to earn a target net income equal to 25% of sales, what would the sales dollars have to be (using the Y-formula)?

a.

$200,000

b.

$300,000

c.

$400,000

d.

$500,000

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