Required Sales in Dollars to Meet a Target Net Income

question 115

Multiple Choice

Required sales in dollars to meet a target net income is computed by dividing

• A) fixed costs plus target net income by unit contribution margin.
• B) variable costs plus target net income by unit contribution margin.
• C) fixed costs plus target net income by contribution margin ratio.
• D) total costs plus target net income by contribution margin ratio.

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Definitions:

Postpurchase Stage

The final step in the consumer decision process, encompassing experiences and behaviors after purchasing a product or service.

Consumer Purchase Decision Process

The steps individuals go through, including recognition of a need, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Sales Promotion

A promotional approach that employs immediate rewards to motivate buying or selling a product or service.

Direct Marketing

A form of advertising where companies directly communicate with potential customers through various mediums.