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Below is the trailing twelve months profit / loss statement for ABC Company: Revenues $25,000,000 Costs of Revenues / Variable Expenses $15,000,000 Fixed Expenses $5,000,000
Below is the trailing twelve months profit / loss statement for ABC Company:
Revenues | $25,000,000 |
Costs of Revenues / Variable Expenses | $15,000,000 |
Fixed Expenses | $5,000,000 |
Profit / Loss | $5,000,000 |
If ABC Company wanted to conduct a $500,000 advertising campaign to promote its spring product line-up, how much revenues would ABC Company need to breakeven on the advertising campaign, cover its costs of goods sold / variable expenses and achieve a profit goal of 20%?
Group of answer choices
$500,000
$1,500,000
$2,000,000
$2,500,000
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