Question
Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and
Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and 60% fixed); direct materials $480,340; direct labor $272,600; administrative expenses $253,800 (20% variable and 80% fixed); and manufacturing overhead $329,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
The company has a target net income of $188,000. What is the required sales in dollars for the company to meet its target?
Sales dollars required for target net income | $enter the required sales in dollars for target net income |
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