The sales would have to be c. $280,000.
The contribution margin ratio is 25%. This means that for every $1 in sales, the company makes a contribution of 25 cents to cover fixed costs and generate a profit. The break-even point in sales is $200,000, which means that the company needs to make $200,000 in sales to break even. To obtain a target net operating income of $60,000, the company needs to generate $260,000 in sales ($200,000 + $60,000). Since the contribution margin ratio is 25%, the sales would have to be $280,000 ($260,000 / 25%). Therefore, the answer is c. $280,000.
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