Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of
Question:
Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of $140,000 during 2022. Its fixed costs are expected to be $56,000, and variable costs are expected to be 30% of sales.
Instructions
a. Determine the required sales to meet the target operating income during 2022.
b. Fill in the dollar amounts for the summary income statement for 2022 below based on your answer to part (a).
Transcribed Image Text:
Sales revenue Variable costs Contribution margin Fixed costs Operating income $ $
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a If variable cost ratio is 30 then contribution ...View the full answer
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Related Book For
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119731825
6th Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
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