Assume the following information is provided:

Explain how each numerator item in the CVP equation is an individual item that can be calculated on its own to find the necessary sales revenue to cover that item. Calculate each element in the numerator individually item by item and total the individual calculations to confirm the $407,730 for total sales revenue required is correct.

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Fixed cost + Added cost + Increase for OI [AT] 1 - VC/SR $120,000 $12,000+ $55,556 - 1 [$151,200/$280,000] $187,556 $187,556 1-54% 46% = $407,730