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sonykiss
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Joined: 19 Mar 2009
Location: United States
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Posts: 56

Posted: 16 Nov 2009 at 08:29 \| IP Logged

Koby Co. has sales of 200,000 witjh variable expenses of 150,000, fixed expenses of 60,000, and an operating loss of 10,000. By how much would Koby have to increase its sales in order to achieve an operating income of 10%? Answer: 400,000.

Answer showed it using this formula: S = VC + FC + expected profit.

How can I solve it using FC/CM formula? Thanks a million!

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sonykiss
"Perseverance is the Doorway that Leads to Success."

700321
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Joined: 26 Aug 2009
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Posts: 308

Posted: 16 Nov 2009 at 08:43 \| IP Logged

im kinda stumped on this one :(

when is your exam?

sonykiss
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Joined: 19 Mar 2009
Location: United States
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Posts: 56

Posted: 16 Nov 2009 at 08:57 \| IP Logged

My exam is next week wednesday. This is how they solved it:

S= VC+FC+expected profit

S=.75s+60,000+10S

15S=60,000

S= 400,000

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sonykiss
"Perseverance is the Doorway that Leads to Success."

700321
Major Contributor

Joined: 26 Aug 2009
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Posts: 308

Posted: 16 Nov 2009 at 09:06 \| IP Logged

oh ok, what review material are you using?

have you taken this exam before?

lexiann
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Joined: 15 Nov 2009
Location: United States
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Posts: 3

Posted: 16 Nov 2009 at 23:25 \| IP Logged

The reality of the matter is sometimes you only have one option to solve the BE questions by using an equation.

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