Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are hoping your business can show a net income of $185,000 next year and are trying to estimate the sales level necessary to reach

image text in transcribed
You are hoping your business can show a net income of $185,000 next year and are trying to estimate the sales level necessary to reach this goal. You know that your cost of goods sold run 35% of sales and that your interest expense will be $12,000. Your fixed operating costs run $180,000 and you expect depreciation of $85,000 with an estimated tax rate of 24%. What sales level will be necessary to reach your target net income? $523.725 O $738.968 O $2.993,810 $800.648 $1,416,032

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Robert R. Johnson, Patricia J. Kuby

11th Edition

978-053873350, 9781133169321, 538733500, 1133169325, 978-0538733502

Students also viewed these Finance questions