Crest Canoe Co. produces and distributes three types of oars to accompany its various canoe product lines. Financial information for the past year on these three oars is as follows: Assume that Crest's overall sales mix for its oars remains the same. What are the required sales revenue levels if management sets the following operating income target levels?
a. Target operating income of $300,000.
b. Target operating income of $400,000.
c. Target operating income of $500,000.

Question

Crest Canoe Co. produces and distributes three types of oars to accompany its various canoe product lines. Financial information for the past year on these three oars is as follows:  Assume that Crest's overall sales mix for its oars remains the same. What are the required sales revenue levels if management sets the following operating income target levels? 
a. Target operating income of $300,000.
b. Target operating income of $400,000.
c. Target operating income of $500,000.

Quizplus · Accepted Answer

The Answer of Crest Canoe Co. produces and distributes three types of oars to accompany its various canoe product lines. Financial information for the past year on these three oars is as follows:  Assume that Crest's overall sales mix for its oars remains the same. What are the required sales revenue levels if management sets the following operating income target levels? 
a. Target operating income of $300,000.
b. Target operating income of $400,000.
c. Target operating income of $500,000.