For the following questions, circle the best response. Answers are at the end of this chapter.
Use the following information for Question.
O’Brien, Inc.’s, 2010 contribution margin income statement shows the following:
Sales @ $8 per unit | $ 160,000 |
Less: Variable expense | (128,000) |
Contribution margin | $ 32,000 |
Less: Fixed expenses | (44,000) |
Operating income (loss) | $ (12,000) |
If O’Brien, Inc.’s, advertising costs increased by $8,000, by how much would sales have to increase for the company to achieve an operating income of $6,000?
a. $66,000.
b. $96,000.
c. $102,000.
d. $130,000.
e. None of the above.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.