Answer:
The total sales = $400,000
Explanation:
Given the information below,
Total sales = $10,000
Variable expenses = $300,000
Contribution margin = 25%
Net operating income = $10,000
Total sales
[300,000 / (1-25%)].
$400,000
Less: Variable expenses
($300,000)
Contribution margin
($100,000)
Less: Fixed cost
[400,000 - 300,000 - 10,000]
($90,000)
Net Operating income
$10,000
The correct answer is ; The total sales = $400,000
