what is the required sales amount? (in dollars)

Mathematics
Tutor: None Selected Time limit: 1 Day

For Turgo Company, variable costs are 60% of sales, and fixed costs are $173,600. Management’s net income goal is $95,400.

Jun 19th, 2015

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Let the Sales amount be x

The variable costs would be 0.6 x

Fixed costs are given as $173,600

Net Income would be x-0.6x-173,600 which is given to be 95,400

Hence the equation to be solved is 

0.4x - 173,600 = 95,400

0.4x = 173,600 +95,400

0.4 x = 269,000

x= $ 672,500

Required Sales amount = $ 672,500


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Jun 19th, 2015

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