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Question - Last year, in 2021, the Joaquin Agave Tequila Company retained $325,000 of its net income of $650,000. This year the company expects sales to stay the same but marketing expenses will be higher due to greater competition. Management is forecasting 2022 net income of approximately $600,000. The company follows a constant payout ratio dividend policy. Based on this year's net income forecast, how much is Joaquin budgeting for dividends to its stockholders in 2022?
The variable costs were $350000 and the net profits were $100000. Administration has directed management to double profits in the next year. Assignment: Determine the Number of lollipops that must be sold to reach this target.
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