Required Sales in Dollars to Meet a Target Net Income

question 115

Multiple Choice

Required sales in dollars to meet a target net income is computed by dividing

• A) fixed costs plus target net income by unit contribution margin.
• B) variable costs plus target net income by unit contribution margin.
• C) fixed costs plus target net income by contribution margin ratio.
• D) total costs plus target net income by contribution margin ratio.

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Definitions:

Rectal

Referring to the rectum.

Axillary

pertains to the armpit area, an anatomical region under the junction where the arm connects to the shoulder.

Oral

Relating to the mouth.

Rectal

Relating to, or situated near the rectum, the final straight portion of the large intestine that ends at the anus.