Hebner Housing Corporation has forecast the following number for this upcoming year:

Sales	$1,000,000
Cost of Goods Sold	600,000
Interest Expense	100,000
Net Income	180,000

The company is in the 40 percent tax bracket. Its cost of goods sold always represents 60 percent of its sales. That is, if the company's sales were to increase to $1.5 million, its cost of goods sold would increase to $900,000. The company's CEO is unhappy with the forecast and wants the firm to achieve a net income equal to $240,000. Assume that Hebner's interest expend remains constant. In order to achieve this level of net income, what level of sales will the company have to achieve?

Answer rating: 100% (QA)

In order to achieve a net income of 240000 the following analysis are required ... View the full answer