Question: A company has variable costs that are 4 / 7 the value of their sales revenues. Total net income for the most recent period was

A company has variable costs that are 4/7 the value of their sales revenues. Total net income for the most recent period was a profit of $53770 and sales were $420000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $6400.
How many sales dollars does the company have to generate to remain at the same level of profitability as before the new ad campaign?

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