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Ignore the facts presented in requirement (5). Assume that management estimates that the selling price per ton would decline by 10 percent next year. Variable

Ignore the facts presented in requirement (5). Assume that management estimates that the selling price per ton would decline by 10 percent next year. Variable costs would increase by $80 per ton, and fixed costs would not change. What sales volume in dollars would be required to earn a net income of $189,000 next year? (Do not round intermediate calculations.)

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[The following information applies to the questions displayed below.] Central Pennsylvania Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tons during the year. The manufacturing capacity of the firm's facilities is 3,000 tons per year. (Ignore income taxes.) CENTRAL PENNSYLVANIA LIMESTONE COMPANY Income Statement For the Year Ended December 31, 20x4 Sales $1,800,000 Variable costs $ 630,000 Manufacturing Selling costs 360,000 $ 990,000 $ 810,000 Total variable costs Contribution margin Fixed costs Manufacturing Selling Administrative $ 200,000 215,000 80,000 Total fixed costs $ 495,000 Net income $ 315,000

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