The CEO of Dunder-Mifflin is requesting a net income of $3 million for the coming year. The firm has interest expense of $3.5 million, fixed
The CEO of Dunder-Mifflin is requesting a net income of $3 million for the coming year. The firm has interest expense of $3.5 million, fixed operating costs of $2.5 million, depreciation of $1.2 million, and plans to pay out $500,000 in dividends. If cost of goods sold run 35% of sales and their tax rate is 25%, what sales level will they need to reach the CEOs income goal?
-
A. $18,000,000
-
B. $13,384,615
-
C. $17,230,769
-
D. $15,753,846
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Brian Sempebwa, David B.
1st Edition
3659490911, 978-3659490910
