A company requires $1,360,000 in sales to meet its net income target.Its contribution margin is 30%, and fixed costs are $240,000.What is the target net income?
A)$408,000
B)$312,000
C)$560,000
D)$168,000

Question

Quizplus · Accepted Answer

The target net income can be calculated using the formula: Target Net Income = (Sales * Contribution Margin) - Fixed Costs. Plugging in the values: ($1,360,000 * 0.30) - $240,000 = $168,000.

A Company Requires $1,360,000 in Sales to Meet Its Net