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Fajardo Company operates with a contribution margin of 25% and currently has a total of $200,000 in fixed costs. For the next year, sales are
Fajardo Company operates with a contribution margin of 25% and currently has a total of $200,000 in fixed costs. For the next year, sales are projected to be $1,000,000. A new advertising campaign will be used during the next year that will cost an additional $25,000. By how much will sales have to increase to justify the advertising cost while maintaining the marginal contribution margin at 25%?
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
