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Question 18 For Sunland Company, variable costs are 65% of sales, and fixed costs are $200,000. Management's net income goal is $85,250. Compute the required
Question 18 For Sunland Company, variable costs are 65% of sales, and fixed costs are $200,000. Management's net income goal is $85,250. Compute the required sales in dollars needed to achieve management's target net income of $85,250. (Use the contribution margin approach.) Required sales Click if you would like to Show Work for this question: Open Show Work Question 19 Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income 2. Net Income Which course of action will produce the higher net income? Click if you would like to Show Work for this question: Open Show Work
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