This is an exam practice question which I have been unable to figure out. I am not sure if contribution margin or contribution margin ratio has something to do with the final answer. The final answer is given to us and it is $440,000.
A company has sales of $300,000 with variable expenses of $210,000, fixed expenses of $110,000, and net loss of $20,000. How much would the company have to sell in order to achieve an operating income of 5% of sales?