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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 Overhead Selling expenses 3,100,000 6,500,000 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. What amount of sales revenue will Sandhill need to achleve 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 $ Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO

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 Overhead Selling expenses 3,100,000 6,500,000 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. What amount of sales revenue will Sandhill need to achleve 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 $ Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Overhead Selling expenses 3,100,000 6,500,000 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: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 Overhead Selling expenses 3,100,000 6,500,000 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.
What amount of sales revenue will Sandhill need to achleve 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 $ Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO
Transcribed Image Text:What amount of sales revenue will Sandhill need to achleve 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 $ Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO
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