Gordon Manufacturing Earned Net Income of $100,000 During 2015

question 131

Essay

Gordon Manufacturing earned net income of $100,000 during 2015. The company wants to earn net income of $40,000 more during 2016. The company's fixed costs are expected to be $147,000, 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).

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Definitions:

Hallucinations

False perceptions or sensory experiences, such as hearing voices or seeing things that are not present, often associated with psychiatric disorders.

Delusions

Fixed false beliefs that conflict with reality, despite evidence to the contrary, often observed in psychiatric conditions, such as schizophrenia.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.