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Carter Company earned net income of $350,000 last year. This year it wants to earn net income of $450,000. The company's fixed costs are expected to be $300,000, and variable costs are expected to be 70% of sales.
Instructions
(a) Determine the required sales to meet the target net income of $450,000 using the mathematical equation.
(b) Using a CVP income statement format, prove your answer.
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