Roaring Camp Inc. projects the following numbers for next year: 

Sales: $2,300,000 

Costs of goods sold: $1,200,000 

Depreciation: $400,000 

Interest expenses: $100,000 

Net income: $200,000 

Assume a constant fraction of sales for cost of goods sold, constant depreciation and interest, and a constant tax rate. 

What level of sales will generate a net income of $400,000 next year?

Answer rating: 100% (QA)

To determine the level of sales that will generate a net income of 400000 ... View the full answer