Gordon Manufacturing Earned Net Income of $100000 During 2015 $\quad$

question 175

Essay

Gordon Manufacturing earned net income of $100000 during 2015. The company wants to earn net income of $40000 more during 2016. The company's fixed costs are expected to be $147000 and variable costs are expected to be 30% of sales.
Instructions
(a) Determine the required sales to meet the target net income during 2016.
(b) Fill in the dollar amounts for the summary income statement for 2016 below based on your answer to part (a). Sales revenue $\quad$$\quad$$\quad$$\quad$ $
Variable costs
Contribution margin
Fixed costs
Net income $\quad$$\quad$$\quad$$\quad$$\quad$ $

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Definitions:

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A naturalistic method based on studying people in their own environment in order to understand the meanings they attribute to their activities; also, the written work that results from the study.

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The breakdown of social bonds between an individual and their community or society, leading to isolation and fragmentation of social life.

Chris McCandless

An American hiker and adventurer best known for his travels to Alaska and the circumstances of his death, which were documented in the book “Into the Wild.”

Wilderness

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