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O?Brien, Inc.?s 2008 contribution margin income st...

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Question

O?Brien, Inc.?s 2008 contribution margin income statement shows the following: Sales @ $8 per unit . . . . . . . . . . . . . . $ 1 60,000 Less: Variable expense . . . . . . . . . . . (1 28,000) Contribution margin . . . . . . . . . . . . . . $ 32,000 Less: Fixed expenses . . . . . . . . . . . . (44,000) Operating income (loss) . . . . . . . . . . . $ (1 2,000) 9. If O?Brien, Inc.?s advertising costs increased by $8,000, by how much would sales have to increase for the company to achieve an operating income of $6,000? a. $66,000. b. $96,000. c. $102,000. d. $130,000. e. None of the above.

 

Paper#11079 | Written in 18-Jul-2015

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