Refer to Exercise 3 3 Sales revenue 840 000 Variable expenses
Refer to Exercise 3-3.
Sales revenue ........... $840,000
Variable expenses........ 630,000
Contribution margin..... 210,000
Fixed expenses......... 112,000
Operating income........ $ 98,000


Required

a. How many cakes will Asher Hyatt have to sell if she wants to earn $148,750 in operating income each month?
b. Assuming a 30% tax rate, how many cakes will Asher Hyatt have to sell if she wants to earn $115,150 in net income each month?

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