Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement panels. Note that both companies have the same sales and net income. Answer question below, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-to-Cover Company wants to increase its profit by $20,000 in the coming year, what must their amount of sales be? Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 2016 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing $233,200.00 4 Selling 21,200.00 5 Administrative 63,600.00 318,000.00 6 Contribution margin 106,000.00 7 Fixed Costs: 8 Manufacturing $5,000.00 9 Selling 4,000.00 10 Administrative 33,400.00 42,400.00 11 Income from operations $63,600.00 Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 2016 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing $169,600.00 4 Selling 16,960.00 5 Administrative 67,840.00 254,400.00 6 Contribution margin 169,600.00 7 Fixed Costs: 8 Manufacturing $88,000.00 9 Selling 8,000.00 10 Administrative 10,000.00 106,000.00 11 Income from operations $63,600.00