Answer
Required 2015 Revenues = ($363,000 + $214,500 + $16,500) \div 0.4714 ≈ $1,112,426.89
Work Step by Step
Required 2015 Revenues = (2014 Net Income + Total Fixed Costs + Additional Advertising Cost) $\div$ Contribution Margin Ratio
Cost Accounting (15th Edition)
by Horngren, Charles T.; Datar, Srikant M.; Rajan, Madhav V.
Published by
Prentice Hall
ISBN 10:
0133428702
ISBN 13:
978-0-13342-870-4
Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 100: 3-36(5)
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