The Formula That Can Be Used to Calculate Sales Dollars

question 14

Multiple Choice

The formula that can be used to calculate sales dollars necessary in order to earn a target income is

• A)(Fixed costs + Contribution margin)/(Contribution margin ratio)
• B)(Fixed costs + Target income)/(Contribution margin ratio)
• C)(Fixed costs + Variable costs)/(1 - Variable cost ratio)
• D)(Fixed costs + Target income )/(1 - Sales ratio)
• E)all of these are correct

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Definitions:

Tautology

A statement that is true by necessity or by virtue of its logical form, independent of the content of the proposition.

Negation

The operation that takes a proposition to its opposite in truth value, often denoted by "not."

Biconditional

A logical statement in which both parts imply each other; it is true when both parts have the same truth value.

Tautologies

Statements that are true in every possible interpretation because they affirm by their structure, such as "either it will rain today or it won't."