Question
Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000 on 125,000 units, selling expenses $240,000 (40% variable and
Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000 on 125,000 units, selling expenses $240,000 (40% variable and 60% fixed), direct materials $512,000, direct labor $20,900, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $362,000 (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 $216,000. What is the required sales in dollars for the company to meet its target? (Round answer to 0 decimal places, e.g. 1,225.)
Sales dollars required for target net income $_____ |
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