Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blistre Company operates on a contribution margin of 30% and currently has fixed costs of $550,000. Next year, sales are projected to be $3,400,000. An

Blistre Company operates on a contribution margin of

30%

and currently has fixed costs of

$550,000.

Next year, sales are projected to be

$3,400,000.

An advertising campaign is being evaluated that costs an additional

$80,000.

How much would sales have to increase to justify the additional expenditure?

A. 186,887 B. 550,000 C. 1,020,000 D. 266,667

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Food And Beverage Cost Control

Authors: Lea R. Dopson, David K. Hayes, Jack E. Miller

4th Edition

0471694177, 978-0471694175

More Books

Students also viewed these Accounting questions