Blistre Company operates on a contribution margin of 30% and currently has fixed costs of $550,000. Next year, sales are projected to be $3,100,000. An advertising campaign is being evaluated that costs an additional $120,000. How much would sales have to increase to justify the additional expenditure?
A) $280,000
B) $930,000
C) $400,000
D) $550,000

Question

Quizplus · Accepted Answer

Required sales = $120,000 / 0.3 = $400,000

Blistre Company Operates on a Contribution Margin of 30% and Currently