The Formula for Calculating Units Required to Meet Target Operating

question 67

Multiple Choice

The formula for calculating units 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 divided by (contribution margin plus target operating income).
• C)contribution margin per unit divided by (total fixed costs plus target operating income).
• D)(contribution margin plus target operating income) divided by total fixed costs.

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Definitions:

International Value

The worth of a product, service, or currency as recognized and accepted across different countries and economies.

Agricultural Exports

Products derived from farming and agriculture that are sold by one country to other countries, which can include crops, livestock, and other agricultural produce.

Dollar

A currency unit used by the United States and some other countries, recognized by its symbol $.

Labor Force

The labor force comprises all the working-age population that is actively employed or seeking employment in an economy.