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Last year, Alesa Company reported a profit of $120,000 when total sales were $600,000; their contribution margin ratio was calculated to be 50%. The marketing

Last year, Alesa Company reported a profit of $120,000 when total sales were $600,000; their contribution

margin ratio was calculated to be 50%. The marketing manager argues that, if Advertising cost (fixed expenses)

is increase by $20,000. What amount of sales will be necessary in order for the company to earn a profit of

$80,000?

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