Consider the income statement for Pickbury Farm: At what sales level does Pickbury achieve net income of $200,000?
A)$700,000
B)$933,333
C)$300,000
D)$666,666

Question

Consider the income statement for Pickbury Farm:  ​ At what sales level does Pickbury achieve net income of $200,000?
A)$700,000 
B)$933,333 
C)$300,000 
D)$666,666

Quizplus · Accepted Answer

To find the answer, we need to use the following formula: Net Income = Sales Revenue - Cost of Goods Sold - Operating Expenses. Plugging in the given values, we get: 200,000 = X - 460,000 - 240,000. Solving for X, we get X = 700,000. Therefore, Pickbury achieves a net income of $200,000 at a sales level of $700,000.

Consider the Income Statement for Pickbury Farm: ​ at What

Consider the Income Statement for Pickbury Farm: at What