O’Brien, Inc.’s, 2010 contribution margin income statement shows the following:
|
Sales @ $8 per unit |
$ 160,000 |
|
Less: Variable expense |
(128,000) |
|
Contribution margin |
$ 32,000 |
|
Less: Fixed expenses |
(44,000) |
|
Operating income (loss) |
$ (12,000) |
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.