A large retail company is working on its annual plan. The company has had several year of declining sales and net income. The business development team, along with the store managers, developed a forecast for sales in the upcoming year. The CEO challenged them to do better, and said he expected a further 10% increase in sales volume. The finance team made the adjustment, but the bottom line is still negative. Executive level managers are under pressure to turn the company around. At a meeting with senior management, the business development team says that it is unreasonable to expect higher volume without a bigger investment in marketing, which the company is not willing to do.A planning analyst is later instructed by the CFO to increase the sales volume in the annual plan. The analyst is aware of the concerns of the business development team and is worried that increasing the volumes is not in the best interest of the company and might even be unethical. The company does not have established policies regarding how to handle such a situation. According to IMA's Statement of Ethical Professional Practice, the analyst should
A detergent company sells large containers of industrial cleaner at a selling price of $12 per container. Each container of cleaner requires $4.50 of direct materials, $2.50 direct labor, and $1.00 of variable overhead. The company has total fixed costs of $2,000,000 and an income tax rate of 40%. Management has set a goal to achieve a targeted after-tax net income of $2,400,000. What amount of dollar sales must the company achieve in order to meet its goal?