Answered: Sheridan Company has fixed costs of…

Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the required sales if Sheridan desires net income of $400000? $11500000 $13500000 $3375000 $2875000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Question

Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the required sales if Sheridan desires net income of $400000?

$11500000

$13500000

$3375000

$2875000

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