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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Question

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?

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