Windows is a small company that installs windows. Its cost structure is as$$ follows:

Selling price from each window installation

$$550$

Variable cost of each window installation

$$500$

Annual fixed costs

$$185,000$

Tax rate

$25\%$

Calculate the number of windows

BestBest

Windows must install and the revenues needed to earn a target net income of

$ $90$ comma $000$$$90,000.$

Question content area bottom

Part $1$

Begin by determining the target operating income needed to earn a net income of

$ $90$ comma $000$$$90,000.$

$$First$,$ select the formula$$ labels, then enter the amounts and calculate the target operating income. $($Enter any percentages as a decimal to two$$ places.$)$

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$=$

Target operating income

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$=$

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Part $2$

$$Next$,$ calculate the number of windows

BestBest

Windows must install to earn a target net income of

$ $90$ comma $000$$$90,000.$

Begin by selecting the formula$$ labels, then enter the amounts and calculate the number of units required to be sold.

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Number of units

$($

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$+$

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$)$

$$

$=$

required to be sold

$($

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$+$

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$)$

$$

$=$

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Part $3$

$$Finally$,$ calculate the revenues needed to earn a target net income of

$ $90$ comma $000$$$90,000.$

Select the formula$$ labels, then enter the amounts and calculate the revenues needed.

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Revenue required

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$=$

to achieve target

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$=$

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