The following information is for Center Corporation: $$\begin{array} { l l }
\text { Total fixed costs } & \$ 313,500 \
\text { Variable costs per unit } & \$ 99 \
\text { Selling price p er unit } & \$ 154
\end{array}$$ If management has a targeted net income of $59,400 (ignore income taxes), then sales revenue should be:
A) $1,044,120
B) $239,721
C) $580,067
D) $671,220

Question

The following information is for Center Corporation: $$\begin{array} { l l } 
\text { Total fixed costs } & \$ 313,500 \
\text { Variable costs per unit } & \$ 99 \
\text { Selling price p er unit } & \$ 154
\end{array}$$ If management has a targeted net income of $59,400 (ignore income taxes), then sales revenue should be:
A) $1,044,120
B) $239,721
C) $580,067
D) $671,220

Quizplus · Accepted Answer

Sales revenue = (Fixed costs + Target net income) / (Selling price per unit - Variable cost per unit)= (313,500 + 59,400) / (154 - 99)= 372,900 / 55= $678,182

The Following Information Is for Center Corporation If Management Has a Targeted Net Income of $59,400 (Ignore