Reference: 08-06
Arthur Company Had the Following Data for the Year

Reference: 08-06
Arthur Company had the following data for the year just ended: $$\begin{array} { | l | l | } \hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$$
-If the company wants to increase its total contribution margin by 40% in the next year, all other factors remaining the same, it will need to increase its sales by:

A) $67,200.
B) $72,000.
C) $96,000.
D) $50,400.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free