Answer:
$ 15,836,000
Explanation:
Given:
Production volume = 602,000 units
Market Price per unit = $ 30
Desired operating income = 16% of the total assets
Total assets = $ 13,900,000
Thus,
Desired operating income = 0.16 × $ 13,900,000 = $ 2,224,000
Now,
the desired profit = Total sales - Total income
or
Desired profit = (Production volume × Market Price per unit ) - Total income
on substituting the respective values, we have
Desired profit = (602,000 × $ 30) - $ 2,224,000
or
Desired profit = $ 18,060,000 - $ 2,224,000
or
Desired profit = $ 15,836,000
