Newton, Inc. earned net income of $100,000 during 2010. The company wants to earn net income of $40,000 more during 2011. The company's fixed costs are expected to be $84,000, and variable costs are expected to be 30% of sales.
Instructions
(a) Determine the required sales to meet the target net income during 2011.
(b) Fill in the dollar amounts for the summary income statement for 2011 below, based on your answer to part (a).

Question

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The Answer of Newton, Inc. earned net income of $100,000 during 2010. The company wants to earn net income of $40,000 more during 2011. The company's fixed costs are expected to be $84,000, and variable costs are expected to be 30% of sales.
Instructions
(a) Determine the required sales to meet the target net income during 2011.
(b) Fill in the dollar amounts for the summary income statement for 2011 below, based on your answer to part (a).