How much of an increase in sales

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Question - Breakeven point, what-if analysis The following information pertains to Torasic Company's budgeted income statement for the month of June 2011:

Sales (1,200 units at $250)                      $300,000

Variable cost                                          150,000

Contribution margin                                $150,000

Fixed cost                                              200,000

Net loss                                                 ($50,000)

Required - The sales manager believes that a $22,500 increase in the monthly advertising expenses will result in a considerable increase in sales. How much of an increase in sales must result from increased advertising in order to break even on the monthly expenditure?

Reference no: EM131817929

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