Question
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
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 |
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Principles Of Accounting And Principles Of Financial Accounting
Authors: Belverd E Needles, Marian Powers, Susan V Crosson
12th Edition
1133962459, 9781133962458
