Koby CoHas Sales of $200,000 with Variable Expenses of $150,000,fixed Expenses

question 14

Multiple Choice

Koby Co.has sales of $200,000 with variable expenses of $150,000,fixed expenses of $60,000,and a net loss of $10,000.How much would Koby have to sell in order to achieve an operating income of 10% of sales?

• A) $375,000.
• B) $451,000.
• C) $431,000.
• D) $400,000.Sales = 60,000/(.25 - .10)= $400,000