The Required Sales in Units to Achieve a Target Net

question 38

Multiple Choice

The required sales in units to achieve a target net income is

• A) (sales + target net income) divided by contribution margin per unit.
• B) (sales + target net income) divided by contribution margin ratio.
• C) (fixed cost + target net income) divided by contribution margin per unit.
• D) (fixed cost + target net income) divided by contribution margin ratio.

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Definitions:

Shareholders Consent

The approval or agreement of shareholders, often required for significant corporate actions.

Self-Dealing

occurs when a person in a fiduciary position acts for their own benefit rather than for the benefit of the beneficiaries.

Prudent Business Judgment

Refers to making careful and sensible business decisions based on a thorough evaluation of risks and benefits.

Consumer-Protection Statutes

Laws designed to safeguard buyers of goods and services, and the public, from unfair practices in the marketplace.