Bassman Company Operates on a Contribution Margin of 30% and Currently

Multiple Choice

Bassman Company operates on a contribution margin of 30% and currently has fixed costs of $400,000. Next year, sales are projected to be $2,000,000. An advertising campaign is being evaluated that costs an additional $60,000. How much would sales have to increase to justify the additional expenditure?

A) $120,000
B) $180,000
C) $200,000
D) $600,000