Answer :
If the company's target net operating income is $60,000, the sales would have to be $350,000.
Define sales.
The revenues received when a corporation sells its items, products, stuff, etc. are referred to as sales in accounting. The sum paid when a corporation sells a noncurrent asset that was formerly used in its operations (such as an old delivery vehicle, display counters, company car, etc.) is not reported as a sale. It is the quantity of goods and services that a company sells over the course of a reporting period. It is listed at the top of the income statement as a monetary amount, from which operational and other expenses are deducted to determine if a profit or loss was made.
Contribution Margin = 30%
Break even point sales = $150,000
Break even point = Fixed Cost/Contribution Margin
150,000 = x/30%
So Fixed cost x = $45,000
Contribution = Net income + fixed cost
= 60,000+ 45,000
= $105,000
So when contribution is 30% , sales is 100%
sales = 1,05,000/30%
= $350,000
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