The cost of goods sold in a retail store totaled $325,000. Fixed selling and administrative expenses totaled $115,000 and variable selling and administrative expenses were $210,000. If the store's contribution margin totaled $590,000, then sales must have been:

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The contribution margin is calculated as Sales minus Variable Costs. Here, Variable Costs include the Cost of Goods Sold ($325,000) and Variable Selling and Administrative Expenses ($210,000), totaling $535,000. Therefore, Sales = Contribution Margin + Variable Costs = $590,000 + $535,000 = $1,125,000.

The Cost of Goods Sold in a Retail Store Totaled