The Required Sales in Units to Achieve a Target Net

question 38

Multiple Choice

The required sales in units to achieve a target net income is

• A) (sales + target net income) divided by contribution margin per unit.
• B) (sales + target net income) divided by contribution margin ratio.
• C) (fixed cost + target net income) divided by contribution margin per unit.
• D) (fixed cost + target net income) divided by contribution margin ratio.

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Definitions:

Tort

A legal wrong that causes harm or loss, leading to civil legal liability.

Plaintiff

The party who initiates a lawsuit in civil court against another party, known as the defendant, seeking legal remedy for an alleged wrong.

Trespass to Realty

An unlawful intrusion or entry onto someone else's land or property without permission.

Landowner's Permission

The consent given by the owner of a piece of land for another party to use the land or undertake specific activities on it.