The Formula Used to Calculate the Number of Units Needed

question 7

Multiple Choice

The formula used to calculate the number of units needed in order to earn a target income is

• A) (Fixed costs + Variable costs)/Sales.
• B) (Fixed costs + Target income)/Sales.
• C) (Fixed costs + Target income)/Contribution margin per unit.
• D) (Fixed costs + Variable costs)/Contribution margin per unit.
• E) (Fixed costs + Target income)/Contribution margin ratio.

Comprehend the legal framework governing corporations, including key legislative acts like the Sarbanes-Oxley Act and the Revised Act.

Understand corporate governance structures, including the role of the board of directors and the audit committee.

Recognize the rights of shareholders in meetings, derivative suits, and the enforcement of claims.

Understand the concept of fiduciary duties and the business judgment rule as it applies to corporate governance.

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Definitions:

Security Interest

A legal claim or lien on assets, granted to lenders or creditors as security for a loan.

Debtor Creditor

Describes the relationship between two parties where one (debtor) owes a debt to the other (creditor).

Future Advancement

A provision in a financial agreement allowing for additional funds or resources to be provided in the future under certain conditions or upon reaching certain milestones.

Security Agreements

Legal contracts that create a lien on assets, providing a lender with a security interest in the assets of the borrower.