Consider the income statement for Pickbury Farm: At what sales level does Pickbury achieve net income of $100,000?
A)$700,000
B)$600,000
C)$300,000
D)$530,000

Question

Consider the income statement for Pickbury Farm:  At what sales level does Pickbury achieve net income of $100,000?
A)$700,000 
B)$600,000 
C)$300,000 
D)$530,000

Quizplus · Accepted Answer

Target sales volume = (Fixed cost + Target profit) / contribution margin ratio
Target sales volume = ($80,000 + $100,000) / ($150,000/$500,000)
Target sales volume = $180,000 / 30% = $600,000

Consider the Income Statement for Pickbury Farm: at What