Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be , and the gross profit must be . Review Later

Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be 40%, and the gross profit must be $17,250.

Explanation:

The income statement is missing, so I looked it up and the information given was:

Revenue 100,000
COGS 40,000
Gross Profit 60,000
Salaries
Marketing
Rent
Earnings Before Tax 23,000
Income Tax 25%
Net Income ?

Since COGS are$40,000 and total sales are $100,000, the COGS margin percentage = 40,000 / 100,000 = 40%

Since earnings before taxes are $23,000 and taxes are 25%, then net income = $23,000 x (1 - 25%) = $23,000 x 75% = $17,250

Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be ______, and the gross profit must be ______. Review Later

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Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be , and the gross profit must be . Review Later