Question
Harvey's convenience variety store had sales revenues of $300,000 last month. Variable expenses were $210,000 and fixed expenses were $93,000. Instead of losing money Harvey
Harvey's convenience variety store had sales revenues of $300,000 last month. Variable expenses were $210,000 and fixed expenses were $93,000. Instead of losing money Harvey hopes to earn an operating profit of $12,000 per month. To do this he must boost sales. To boost sales revenues Harvey will spend $21,000 per month on an advertising campaign, which will be added to his fixed expenses. Taking into account the advertising campaign how much must Harvey sell per month to earn the target profit of $12,000?
A) $420,000
B) $440,000
C) $370,000
D) $361,000
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