Vanguard Solutions manufactures and sells a single product that sells for $720 per unit; variable costs are $400. Annual fixed costs are $1,050,000. The current sales volume is $5,760,000. Vanguard Solutions management targets an annual pre-tax income of $1,200,000. Compute the dollar sales to earn the target pre-tax net income.

Vanguard Solutions manufactures and sells a single product that sells for $720 per unit; variable costs are $400. Annual fixed costs are $1,050,000. The current sales volume is $5,760,000. Vanguard Solutions management targets an annual pre-tax income of $1,200,000. Compute the dollar sales to earn the target pre-tax 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 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...

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