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). 
Definitions:
Promissory Estoppel
A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.
Oral Contracts
Agreements between parties that are spoken rather than written but are still legally binding.
Real Estate Mortgage
A legal agreement where real property is used as collateral for a loan.
Statute of Frauds
A legal principle requiring certain types of contracts to be executed in writing to be enforceable.
Q13: Hinge Manufacturing's cost of goods sold is
Q35: The job cost sheet does not show<br>A)
Q59: Sandburg Manufacturing manufactures a single product. Annual
Q93: Noland Company manufactures two models of its
Q95: Romero Company-Perth Division is a new state
Q103: CVP analysis does not consider<br>A) level of
Q141: Watts Company adds materials at the beginning
Q153: Hayward Manufacturing Company developed the following data:
Q153: A factory is operating at less than
Q169: Nelson Manufacturing has the following data:<br>Variable costs