How Much Sales Are Required to Earn a Target Income

question 56

Multiple Choice

How much sales are required to earn a target income of $160,000 if total fixed costs are $200,000 and the contribution margin ratio is 40%?

• A)$600,000
• B)$400,000
• C)$900,000
• D)$660,000

Identify and explain the exceptions to the parol evidence rule.

Distinguish between conditions precedent and subsequent in contract law.

Understand how electronic transactions are treated under laws related to the statute of frauds.

Understand the concept of fraudulent misrepresentation and its requirements, including intent and scienter.

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Definitions:

Competition Tribunal

A specialized court or tribunal that adjudicates matters pertaining to competition law, including antitrust and monopoly issues.

Competition Act

Legislation designed to promote fair business practices and protect consumers by preventing monopolies and promoting competition.

Bid-rigging

A form of fraud in which competitors agree in advance who will win a bidding process, thus undermining the competition.

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.