(Q) Question Drake, Inc. manufactures electric welders that it sells to other manufacturers, and sales l

Question

Drake, Inc. manufactures electric welders that it sells to other manufacturers, and sales last year were $45 million. Drake has a 35% contribution margin. The marketing manager has suggested increasing the number of sales representatives by five, which would cause fixed costs to increase by $250,000. a. What incremental dollar volume would be necessary to break even on the suggestion to hire five additional sales reps?

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