Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs.

To achieve $100,000 in operating profit, sales must total:

a. $160,000

b. $440,000

c. $130,000

d. None of these answers are correct.

I know the answer is D), I want to know where the 75% comes from in the solution of:

(100,000+10,000) / 75% = $146,667 in sales