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)
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.