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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?


Definitions:

Commercial Unit

A term used in sales law referring to a standard or unit of goods that is regarded as a single whole for purposes of sale and division.

Accept Goods

The act of receiving or taking delivery of goods in a manner that conforms with the terms of a contract.

Nonconformity

A deviation or failure to meet specified standards, often relating to quality or performance in products or services.

Replace Defective

The process of substituting goods or services that are flawed or do not meet the contractual specifications.

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