Jagswear Inc. earned operating income of $92,000 during 2020. The company wants to earn operating income of $157,000 during 2020. Its fixed costs are expected to be $59,300, and variable costs are expected to be 25% of sales.

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

Required sales

$enter the Required sales in dollars

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

Sales revenue		$enter a dollar amount
Variable costs		enter a dollar amount
Contribution margin		enter a subtotal of the two previous amounts
Fixed costs		enter a dollar amount
Operating income		$enter a total amount