Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lexington has a sales forecast of $10,158,960 million and has set a goal to earn $4,474,686 in net income in the coming year. The firm

Lexington has a sales forecast of $10,158,960 million and has set a goal to earn $4,474,686 in net income in the coming year. The firm manufactures heat resistant components for gas turbine engines that sell for $4,795 each. This firm has a 60% contribution margin, a 21% tax rate, and no outstanding debt. What will be the fixed costs in the next year should the firm reach its goal? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND OFF THE FINAL ANSWER TO THE NEAREST WHOLE NUMBER. FOR EXAMPLE IF YOUR ANSWER IS 1,000,000.98 THEN ENTER YOUR ANSWER AS 1000001 ONLY. DO NOT ENTER ANY SYMBOLS.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance Practical Case Studies Volume 2

Authors: Henry A. Davis

2nd Edition

1843740524, 9781843740520

More Books

Students also viewed these Finance questions