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How much would sales have to increase for the company

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Reference no: EM132527526

Den's 2015 contribution margin income statement shows the following:

Sales @ $8 per unit $128,000

Less: Variable expense (96,000)

Contribution margin $ 32,000

Less: Fixed expenses (40,000)

Operating profit (loss) $ (8,000)

Question 1: If Den's advertising costs increased by $6,000, by how much would sales have to increase for the company to achieve an operating profit of $4,000?

Reference no: EM132527526

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