Sales Revenue to Earn Target Profits Equals Total Fixed Costs

question 64

True/False

Sales revenue to earn target profits equals total fixed costs plus target profit divided by the contribution margin.

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Definitions:

Von Bertalanffy

Ludwig von Bertalanffy is known for developing General Systems Theory, which views biological systems as open systems in constant interaction with their environment.

Classical Theories

Early frameworks and principles in fields such as sociology, economics, and management that laid foundational concepts for their respective disciplines.

Double-Interact

An interaction concept where a person sends a message, receives feedback, and then adjusts their subsequent behavior based on that feedback, emphasizing the dynamic nature of communication.

Equivocality

The quality of being open to more than one interpretation; ambiguity especially in the context of organizational communication and decision-making.