Gourmet Delight Bistro had a 10% return on a $75,000 investment in new kitchen equipment. The investment resulted in increased sales and an increase in income that was 4% of the increase in sales. What was the increase in sales?
Gourmet Delight Bistro had a 10% return on a $75,000 investment in new kitchen equipment. The investment resulted in increased sales and an increase in income that was 4% 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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Transcribed Image Text:Gourmet Delight Bistro had a 10%
return on a $75,000 investment in new
kitchen equipment. The investment
resulted in increased sales and an
increase in income that was 4% of the
increase in sales.
What was the increase in sales?
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