The ABC Distributing (ABC) 2019 profit and loss statement shown below. The depicted relationships are valid...
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The ABC Distributing (ABC) 2019 profit and loss statement shown below. The depicted relationships are valid within $14,000,000.00 to $65,000,000.00. What level of sales would a new salesperson have to produce if annual costs (salary, expenses, and other traceable costs) were $120,000 and ABC wanted to make a 5% return (ROS) on the incremental sales? ABC 2019 Profit and Loss Statement* Sales $ 20,000,000 Cost of goods sold Gross margin 12,000,000 8,000,000 Variable costs 2,000,000 Fixed costs 4,000,000 Total costs 6,000,000 $ 2,000,000 Profit (before taxes) and *Taxes are eliminated from the analysis to simplify focus the calculations. The ABC Distributing (ABC) 2019 profit and loss statement shown below. The depicted relationships are valid within $14,000,000.00 to $65,000,000.00. What level of sales would a new salesperson have to produce if annual costs (salary, expenses, and other traceable costs) were $120,000 and ABC wanted to make a 5% return (ROS) on the incremental sales? ABC 2019 Profit and Loss Statement* Sales $ 20,000,000 Cost of goods sold Gross margin 12,000,000 8,000,000 Variable costs 2,000,000 Fixed costs 4,000,000 Total costs 6,000,000 $ 2,000,000 Profit (before taxes) and *Taxes are eliminated from the analysis to simplify focus the calculations.
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