A Company Has Variable Costs That Are 1/8 the Value

question 32

Multiple Choice

A company has variable costs that are 1/8 the value of their sales revenues. Total net income for the most recent period was a profit of $50 400 and sales were $500 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $15 000. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?

• A) $517 142.86
• B) $387 100.00
• C) 392 100.00
• D) $387 100.86
• E) 392 100.86

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Definitions:

Major Mental Health Disciplines

Fields of study and practice that focus on diagnosing, treating, and understanding human mental health and disorders.

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The skills, knowledge, and abilities that enable a person to perform tasks successfully.

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This is the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

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A course of action aimed at remedying or alleviating a health problem or psychological issue.