The following information is available for Kismer Corporation:
$\begin{array}{ll}
\text { Total fixed costs }&\$313,500\
\text { Variable costs per unit } & \$ 90 \
\text { Selling price per unit } & \$ 150
\end{array}$
If management has a targeted net income of $59,400,then sales revenue should be ________.
A) $239,721
B) $580,067
C) $671,220
D) $932,250

Question

Quizplus · Accepted Answer

To find the required sales revenue, first calculate the required sales in units to achieve the target net income. Use the formula: Required sales in units = (Total fixed costs + Target net income) / (Selling price per unit - Variable cost per unit). Plugging in the values: (313,500 + 59,400) / (150 - 90) = 6,225 units. Then, calculate the sales revenue: 6,225 units * $150 = $933,750. However, the closest option is $932,250, which is likely due to rounding differences.

The Following Information Is Available for Kismer Corporation If Management Has a Targeted Net Income of $59,400,then Sales