beach tanning prepared the following contribution margin income statement for the prior fiscal year.

revenue $500,000

Variable cost 200,000

contribution margin $300,000

fixed cost 324,000

operating income ($24,000)

1. compute the amount of additional revenue that beach tanning must generate in order to break even.

2. they're considering a radio ad campaign. this campaign will generate $40,000 in additional contribution margin. compute the most they should be willing to pay for this ad?

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