How Much Sales Are Required to Earn a Target Net

question 91

Multiple Choice

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

• A)$500,000
• B)$810,000
• C)$900,000
• D)$400,000

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Definitions:

Cognitive Delays

A slower development of mental processes compared to typical age-related expectations.

School Absenteeism

The habitual non-attendance of a student at school without valid reason, which can impact educational outcomes.

Cultural Deficit Model

The belief that cultural values, as transmitted through the family, are dysfunctional and the cause of poverty and lack of education.

Generational Poverty

Being in poverty for at least two generations.