Jagswear, Inc. earned operating income of $100,000 during 2012. The company wants to earn operating income of $140,000 during 2013. 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 2013.
(b) Fill in the dollar amounts for the summary income statement for 2013 below based on your answer to part A.
Sales revenue ___________________ $
Variable costs
Contribution margin
Fixed costs
Operating income ________________$