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Problem - Vamanos Company earned net income of $350,000 last year. This year it wants to earn net income of $400,000. The company's fixed costs are expected to be $500,000, and variable costs are expected to be 60% of sales.
Calculate the required sales to meet the target net income of $400,000.
Using a Cost Volume Profit(CVP) income statement format, prove your answer.
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