Question - ABC Company reported the following information for 2019:
Sales - 14,000 units
Margin - 25%
Variable cost per unit - $8.80
Average operating assets - $550,000
Return on investment - 14%
Minimum required rate of return - 9%
Management of ABC Company is beginning to budget for 2020 and would like answers to some what-if scenarios.
Calculate the net operating income ABC Company needed to earn in 2019 in order for its turnover to be equal to 1.54.