Answered: Maplewood Inc. has variable costs of…

Maplewood Inc. has variable costs of 82% of sales, current sales of $900,000, and fixed costs of $200,000. Compute the sales required to achieve a $75,000 net income.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Compute the sales required to achieve a $75,000 net income.

Maplewood Inc. has variable costs of 82% of sales, current sales of
$900,000, and fixed costs of $200,000.
Compute the sales required to achieve a $75,000 net income.

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