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Oriole Candy Company is a wholesale distributor of candy. The company services grocers, convenience stores, and drugstores in a large metropolitan area Oriole Candy Company

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Oriole Candy Company is a wholesale distributor of candy. The company services grocers, convenience stores, and drugstores in a large metropolitan area Oriole Candy Company has achieved small but steady growth in sales over the past few years, but costs have also been increasing The company is formulating its plans for the coming fiscal year. The following data were used to project the current year's after-tax operating income of $368,448: Average selling price $8.00 per box Average variable costs Cost of candy $4.00 per box Selling expenses 0.80 per box Total $4.80 per box Annual fixed costs Selling Administrative Total $352,000 738,800 $1,090,800 The expected annual sales volume (858,000 boxes) is $6,864,000 and the tax rate is 40%. Candy manufacturers have announced that they will increase the prices of their products by an average of 15% in the coming year because of increases in raw material (sugar, cocoa, peanuts, and so on) and labour costs. Oriole Candy Company expects that all other costs will remain at the same rates or levels as during the current year. Calculate the volume of sales in dollars that Oriole Candy Company must achieve in the coming year to keep the same operating income after taxes that was projected for the current year if the selling price of candy remains at $8.00 per box and the cost of candy increases by 15%. (Round contribution margin ratio to 2 decimal places, eg. 15.25% and final answer to decimal places, eg. 125) Volume of sales to be maintained

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