Fantastic Ltd. operates on a contribution margin of 35% and currently has fixed costs of $400 000. Next year, sales are projected to be $2 000 000. An advertising campaign is being evaluated that costs an additional $70 000. How much would sales have to increase to justify the additional expenditure?

A.

$300 000

B.

$70 000

C.

$200 000

D.

$140 000