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:

Principled Negotiation

A negotiation strategy that involves seeking mutually beneficial solutions by focusing on interests rather than positions, emphasizing objective criteria.

Objective Standard

A benchmark or criterion that is not influenced by personal feelings, interpretations, or prejudice, applied equally to all cases.

Integrated Agreements

Deals or contracts that bring together various separate elements or aspects into a unified whole.

Objective Standard

A measure, rule, or criterion that is not influenced by personal feelings, interpretations, or prejudice, and is based on fact.