Using the Data Below, to Achieve a $60,000 Increase in Revenue

question 13

Essay

Using the data below, to achieve a $60,000 increase in revenue, how much would sales have to increase? $\begin{array}{llcc}&& \text { Dollars }& \text { Percent of Sales}\\ \text { Revenue } &&\$1,000,000&100\%\\ \text { Cost of Goods Sold } &\\ \text {Direct Material } &\$500,000&&50\%\\ \text { Direct Labor} &\underline{\quad\quad}&&20\%\\ \text {Factory Overhead } &\$200,000&&20\%\\ \text {Total Cost of Goods } &&\underline{\$900,000}&90\%\\ \text {Gross Profit } &&\$100,000&10\%\\\end{array}$

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Definitions:

Budgeted Beginning Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the start of a period.