Question: Below is the trailing twelve months profit / loss statement for ABC Company: Revenues $25,000,000 Costs of Revenues / Variable Expenses $15,000,000 Fixed Expenses $5,000,000

Below is the trailing twelve months profit / loss statement for ABC Company:

Revenues $25,000,000
Costs of Revenues / Variable Expenses $15,000,000
Fixed Expenses $5,000,000
Profit / Loss $5,000,000

If ABC Company wanted to conduct a $500,000 advertising campaign to promote its spring product line-up, how much revenues would ABC Company need to breakeven on the advertising campaign, cover its costs of goods sold / variable expenses and achieve a profit goal of 20%?

Group of answer choices

$500,000

$1,500,000

$2,000,000

$2,500,000

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