Blistre Company Operates on a Contribution Margin of 30% and Currently

question 8

Multiple Choice

Blistre Company operates on a contribution margin of 30% and currently has fixed costs of $550,000. Next year, sales are projected to be $3,100,000. An advertising campaign is being evaluated that costs an additional $120,000. How much would sales have to increase to justify the additional expenditure?

• A) $280,000
• B) $930,000
• C) $400,000
• D) $550,000

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Definitions:

Personal Branding

The practice of marketing oneself and one's career as a brand, highlighting unique skills, values, and experiences.

Company's Success

Refers to the achievement of a company's goals and objectives, leading to its growth, profitability, and long-term sustainability.

Promotion

Marketing efforts aimed at increasing awareness of a product or service to boost sales and enhance brand visibility.

Offering

What you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them.