Exercise 192 Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of $450,000. The company's fixed costs are expected to be $300,000, and variable costs are expected to be 70% of sales.

Determine the required sales to meet the target net income of $450,000 using the mathematical equation.

Required sales

$

Using a CVP income statement format, prove your answer.

Contribution marginFixed costsTarget net income / (Loss)SalesVariable costs	$
Contribution marginTarget net income / (Loss)Fixed costsVariable costsSales
Variable costsSalesTarget net income / (Loss)Contribution marginFixed costs
Variable costsFixed costsContribution marginSalesTarget net income / (Loss)
SalesContribution marginFixed costsTarget net income / (Loss)Variable costs	$