How Much Sales Are Required to Earn a Target Net

question 26

Multiple Choice

How much sales are required to earn a target net income of $80,000 if total fixed costs are $100,000, the contribution margin ratio is 40% and the tax rate is 25%?

• A)$6,000,000
• B)$250,000
• C)$516,667
• D)$1,050,000

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Definitions:

Emotions

Complex psychological states involving subjective experiences, physiological responses, and behavioral or expressive reactions.

Motivation

The driving force behind individuals' actions, desires, and needs; a factor that prompts and sustains goal-oriented behaviors.

Personality

The relatively consistent blend of emotions, temperament, thought, and behavior that makes a person unique.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and built contexts.