What will sales have to be for the company to earn a profit

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Reference no: EM132796496

Problem 1: Last year, Pamela Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 35%. If fixed expenses increase by $20,000 next year, what will sales have to be for the company to earn a profit of $80,000?

Option 1: $562,500
Option 2: $570,000
Option 3: $605,714
Option 4: $577,143
Option 5: None of these choices is correct.

Reference no: EM132796496

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