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Last year, Pamela Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 35%. If fixed expenses increase by

Last year, Pamela Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 35%. If fixed expenses increase by $20,000 next year, what will sales have to be for the company to earn a profit of $80,000?

A) $562,500

B) $570,000

C) $605,714

D) $577,143

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