The Formula for Calculating the Sales Dollars Required to Meet

question 166

Multiple Choice

The formula for calculating the sales dollars required to meet target operating income is

• A)(total fixed costs plus target operating income) divided by contribution margin per unit.
• B)(total fixed costs plus target operating income) divided by contribution margin ratio.
• C)(total fixed costs plus target operating income) divided by total variable costs.
• D)(contribution margin plus target operating income) divided by total fixed costs.

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Definitions:

Simple Design

The creation of a product or solution that is straightforward, easy to use, and free of unnecessary complexity.

Network Organization Design

A flexible approach to structuring an organization where coordination is achieved through informal networks and relationships rather than through a formal hierarchical structure.

Special Knowledge

Expertise or advanced understanding in a particular area or field, distinguishing an individual from the general population.

Full-Time Employees

Workers who are employed for the entirety of the standard workweek, typically fulfilling a minimum number of hours specified by their employer.