1. Jagswear Inc. earned operating income of $100,000 during 2020. The company wants to earn operating income of $140,000 during 2020. Its fixed costs are expected to be $56,000, and variable costs are expected to be 30% of sales.

a. Determine the required sales to meet the target operating income during 2020.

b. Fill in the dollar amounts for the summary income statement for 2020 below based on your answer to part a.

Sales revenue $________

Variable costs $________

Contribution margin $_________

Fixed costs $________

Operating income $ _________