What Basic Information Is Needed in Order to Calculate the Level

question 161

Essay

What basic information is needed in order to calculate the level of sales to reach a target operating income? Managers often want to know how many units must be sold to reach target net income, but the profit equation calculates operating income.How can a manager convert net income to operating income?

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Definitions:

Ecological Term

In social work, it pertains to an approach that considers individuals within the context of their environment and the complex interactions between them.

Dynamic Interactions

Interactions characterized by continuous change, activity, or progress within a group or system, affecting each other's behaviors and attitudes.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feelings, etc., to someone else.

Mutual Reliance

A condition in which individuals or groups depend on each other for support, resources, or success.