Answer:
B) $200,000
Explanation:
Mardist's current income statement:
total revenue $100,000
variable expenses $75,000 (75% total sales)
<u>fixed expenses $30,000</u>
net loss -$5,000
if Mardist's total sales increase to:
revenue $187,500 <u>$200,000</u> $225,500 $180,000
variable 75% $140,625 $150,000 $169,125 $135,000
<u>fixed $30,000 $30,000 $30,000 $30,000 </u>
net gain $17,500 $20,000 $26,375 $15,000
% from total sales 9.3% <u> 10% </u> 11.70% 8.3%