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    Target Sales Given Target Net Income

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    Variable cost for Little Lucy Pie Company is 40% of sales and the break-even point in sales is $600,000. If target net operating income is $120,000, target sales would be

    A) $960,000.

    B) $900,000.

    C) $840,000.

    D) $800,000.

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    Solution Summary

    The solution explains how to determine the target sales to achieve a given target income