A Company That Makes Audio Computer Input Devices Has Calculated

question 12

Multiple Choice

A company that makes audio computer input devices has calculated their revenue and costs as follows for the most recent fiscal period: The company has a target level of profitability of $35,000 per fiscal period. What sales dollar volume do they have to achieve in order to achieve their goal?

• A)$840 909.09
• B)$616 071.43
• C)$784 090.91
• D)$863 636.36
• E)$678 571.43

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Definitions:

Gross Profit

The difference between total revenue and the cost of goods sold, indicating the fundamental profitability of a company's core activities.

Rising Prices

A situation in which the general level of prices for goods and services in an economy increases over a period of time.

Market Cost

The current price at which goods, assets, or services can be bought or sold in the marketplace.

Perpetual Inventory System

An inventory accounting method where updates are made continuously to record sales and purchases in real time.