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Hi! Could someone give explanation and show me steps for this question, please? Thank you so much! Den's 2015 contribution margin income statement shows the
Hi! Could someone give explanation and show me steps for this question, please? Thank you so much!
Den's 2015 contribution margin income statement shows the following:
Sales @ $8 per unit$128,000
Less: Variable expense(96,000)
Contribution margin$ 32,000
Less: Fixed expenses(40,000)
Operating profit (loss)$ (8,000)
If Den's advertising costs increased by $6,000, by how much would sales have to increase for the company to achieve an operating profit of $4,000?
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