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How much would sales have to increase

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Question - Fantastic Ltd. operates on a contribution margin of 35% and currently has fixed costs of $400,000. Next year, sales are projected to be $2,000,000. An advertising campaign is being evaluated that costs an additional $70,000. How much would sales have to increase to justify the additional expenditure?

A. $300,000

B. $70,000

C. $200,000

D. $140,000

Reference no: EM133092601

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