How Much Sales Are Required to Earn a Target Net

question 76

Multiple Choice

How much sales are required to earn a target net income of $200000 if total fixed costs are $250000 and the contribution margin ratio is 40%?

• A) $625000
• B) $1012500
• C) $1125000
• D) $500000

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Definitions:

Other Banks

Financial institutions that provide a range of services including deposits, loans, and investment products, distinct from the context's primary banking entity.

Clearing House Interbank Payments System

A network used by financial institutions to send and receive payments or securities in large volumes, typically for bank-to-bank transactions.

Society of Worldwide Interbank Financial Telecommunications

An international messaging network used by banks and financial institutions to securely transmit information and instructions.

Client Accounts

Accounts managed by a company or firm that contain the personal and transactional information of its clients.