Valor Manufacturing's break-even point in sales is $1,200,000, and its variable expenses are 60% of sales. If the company earned a net income of $75,000 last year, sales must have amounted to: a. $1,050,000 b. $1,320,000 c. $1,387,500 d. $1,500,000

Valor Manufacturing's break-even point in sales is $1,200,000, and its variable expenses are 60% of sales. If the company earned a net income of $75,000 last year, sales must have amounted to: a. $1,050,000 b. $1,320,000 c. $1,387,500 d. $1,500,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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I need help finding the accurate solution to this general accounting problem with valid methods.

Valor Manufacturing's break-even point in sales is $1,200,000, and its
variable expenses are 60% of sales. If the company earned a net income of
$75,000 last year, sales must have amounted to:
a. $1,050,000
b. $1,320,000
c. $1,387,500
d. $1,500,000

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