PRINTER VERSION CALCULATOR 1 BACK NEX Problem 3-35 (Part Level Submission) Sandhill Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. $41.17 Sales price Variable cost of goods sold Variable selling expenses Variable administrative expenses 13.17 11.77 4.17 Annual fixed expenses $15,600,000 3,100,000 6,500,000 Overhead Selling expenses Administrative expenses Sandhill can produce 3,000,000 cases a year. The projected net income for the coming year is expected to be $3,600,000. Sandhill is subject to a 40% income tax rate. During the planning sessions, Sandhill's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $300,000. All other costs and expenses are expected to remain the same. LINK TO VIDEO Attempts: 2 of 5 used v (a2) What amount of sales revenue will Sandhill need to achieve in the coming year to earn the projected net income of $3,600,000? (Use the rounded contribution margin per unit calculated in the previous part to compute Sales Revenue. Round answer to 0 decimal places, e.g. 25,000.) Sales revenue $
PRINTER VERSION CALCULATOR 1 BACK NEX Problem 3-35 (Part Level Submission) Sandhill Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. $41.17 Sales price Variable cost of goods sold Variable selling expenses Variable administrative expenses 13.17 11.77 4.17 Annual fixed expenses $15,600,000 3,100,000 6,500,000 Overhead Selling expenses Administrative expenses Sandhill can produce 3,000,000 cases a year. The projected net income for the coming year is expected to be $3,600,000. Sandhill is subject to a 40% income tax rate. During the planning sessions, Sandhill's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $300,000. All other costs and expenses are expected to remain the same. LINK TO VIDEO Attempts: 2 of 5 used v (a2) What amount of sales revenue will Sandhill need to achieve in the coming year to earn the projected net income of $3,600,000? (Use the rounded contribution margin per unit calculated in the previous part to compute Sales Revenue. Round answer to 0 decimal places, e.g. 25,000.) Sales revenue $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PRINTER VERSION
CALCULATOR
1 BACK
NEX
Problem 3-35 (Part Level Submission)
Sandhill Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes.
$41.17
Sales price
Variable cost of goods sold
Variable selling expenses
Variable administrative expenses
13.17
11.77
4.17
Annual fixed expenses
$15,600,000
3,100,000
6,500,000
Overhead
Selling expenses
Administrative expenses
Sandhill can produce 3,000,000 cases a year. The projected net income for the coming year is expected to be $3,600,000. Sandhill is subject to a 40% income tax rate.
During the planning sessions, Sandhill's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and
that fixed administrative expenses will increase by $300,000. All other costs and expenses are expected to remain the same.
Transcribed Image Text:LINK TO VIDEO
Attempts: 2 of 5 used
v (a2)
What amount of sales revenue will Sandhill need to achieve in the coming year to earn the projected net income of $3,600,000? (Use the rounded contribution margin per unit calculated in
the previous part to compute Sales Revenue. Round answer to 0 decimal places, e.g. 25,000.)
Sales revenue $
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