Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000....
Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000. Next year, sales are projected to be $3,200,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure?
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$530,000 |
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$1,280,000 |
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$165,000 |
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$275,000 |
Homework Answers
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Sales needed to justify the additional expenditures = Additional fixed cost/Contribution margin ratio = 110,000/40% = 275,000 Option D is the answer |
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Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000....
Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $520,000. Next year, sales ar...
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