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