A Company Requires $1700000 in Sales to Meet Its Net

question 79

Multiple Choice

A company requires $1700000 in sales to meet its net income target. Its contribution margin is 30% and fixed costs are $300000. What is the target net income?

• A) $510000
• B) $390000
• C) $700000
• D) $210000

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Definitions:

Tax on Sellers

A financial charge imposed on sellers of goods or services, which can affect the supply and pricing of those goods or services.

Tax on Buyers

A levy imposed on consumers by the government, which typically raises the purchase price of goods and services, affecting demand.

Shortage

A situation in which the demand for a product or service exceeds the supply available at a specific price.

Tax on Good

A financial charge imposed by a government on the sale of a product or service, affecting its price.