Isaacson Co.has total fixed costs of $240,000 and a contribution margin ratio of 40%.If rent expense increases by $5,000,how much will total sales revenue have to increase to cover this increase in costs?

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much of sales revenue is available to cover fixed costs and generate profit.

Fixed Costs

Costs that remain constant regardless of the amount of output or the level of business operations, including expenses like rent, wages, and insurance fees.

Rent Expense

The cost incurred from renting property or equipment for business or personal use, recognized as an expense on the income statement.