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How does the write-off of a nun collectible account receivable and the recovery of a previously written-off account receivable effect net income?
A) write-offshave no effect on net income; recoveries have no effect on netincome
B) write-offshave no effect on net income; recoveries decrease net income
C) write-offsdecrease net income; recoveries decrease net income
D) write-offshave no effect on net income; recoveries increase net income
E) write-offsdecrease net income; recoveries have no effect on net income
A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income?
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