The Formula That Can Be Used to Calculate Sales Dollars

question 17

Multiple Choice

The formula that can be used to calculate sales dollars necessary in order to earn a target income is

• A) (Fixed costs + Contribution margin)/(Contribution margin ratio).
• B) (Fixed costs + Target income)/(Contribution margin ratio).
• C) (Fixed costs + Variable costs)/(1 - Variable cost ratio).
• D) (Fixed costs + Target income )/(1 - Sales ratio).
• E) All of these are correct.

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Definitions:

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.