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    Sales to achieve target income

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    How would you calculate total sales to achieve a given net income using fixed cost and a variable cost which is expressed as a percentage of sales?
    i.e.: Fixed cost $35,000
    Variable cost are 30% of sales (Are we to assume sale = 100%?)
    Net Income $50,000

    © BrainMass Inc. brainmass.com June 3, 2020, 8:29 pm ad1c9bdddf

    Solution Preview

    Net income = Sales*(1-Variable cost as percentage of sales) - Fixed cost
    Net ...

    Solution Summary

    The solution examines sales to achieve target incomes.