Problem:
The CEO of Madison. Inc. has provided you with the following information for its operation for 2013. Dollar figures are in thousands.
- Sales Revenue : $200
- Cost of Goods Sold : $120
- Total Contribution Margin : $100
- Fixed Costs : Manufacturing : $40
- Fixed Costs : Selling and Adminstrative : $20
- Variable Selling Expense : $20
The tax rate for Newark is 25%. If they want to increase the after-tax income for 2014 by $15, by how much do they have to increase their sales revenue? Assume everything else remains constant (including the price)
Note: Explain in detail.