Northern Territory Adventure Company Operates on a Contribution Margin of 35

question 49

Multiple Choice

Northern Territory Adventure Company 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)$140 000
• C)$200 000
• D)$70 000

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Definitions:

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