A Company Has Variable Costs That Are 4/7 the Value

question 10

Multiple Choice

A company has variable costs that are 4/7 the value of their sales revenues. Total net income for the most recent period was a profit of $53 770 and sales were $420 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $6400. 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) $434 933.33
• B) $326 357.50
• C) $420 210.00
• D) $140 396.67
• E) $105 297.50

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Definitions:

Eye Contact

The act of looking directly into another person's eyes, which can convey various emotions and social signals.

Symmetric

Having congruent shapes, sizes, and relative positions on opposite sides of a dividing line or mediant plane or about a center or axis.

Complementary

Complementary refers to practices or products that are used together with conventional medical treatment to enhance healing and wellbeing.

Therapeutic Response

The beneficial outcome or improvement in symptoms following a treatment or intervention.