How Much Sales Are Required to Earn a Target Income

question 57

Multiple Choice

How much sales are required to earn a target income of $240000 if total fixed costs are $300000 and the contribution margin ratio is 40%?

• A) $900000
• B) $600000
• C) $1350000
• D) $990000

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Definitions:

Sales Force Automation

The use of software to automate business tasks of sales, including order processing, contact management, information sharing, inventory monitoring, and sales forecast analysis.

Lead Qualification

The process of assessing the potential of sales leads to determine whether they have the need, authority, and financial capacity to purchase a product or service.

Customer Buying Patterns

Refers to the habits or behaviors exhibited by consumers when making purchasing decisions, often analyzed to predict future buying behaviors.

Customer Service

Support and services provided to customers both before and after a purchase, aimed at ensuring their satisfaction.