Golden Harvest Restaurant had a 12% return on a $60,000 investment in new dining furniture. The investment resulted in increased sales and an increase in income that was 5% of the increase in sales. What was the increase in sales?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8DQ: Suppose a firm with a contribution margin ratio of 0.3 increased its advertising expenses by 10,000...
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Golden Harvest Restaurant had a 12% return on a $60,000 investment in new dining furniture. The investment resulted in increased sales and an increase in income that was 5% of the increase in sales. What was the increase in sales?

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