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.

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Definitions:

Foreign Aid

Financial or other assistance provided by one country to another to help with economic development, social welfare, disaster relief, etc.

Dependency

A reliance on someone or something else for support or the proportion of non-working population to the working population.

Private Capital Flows

Financial resources that are invested in a country by private sector entities from other countries, including investments in equity, debt, and property.

Direct Foreign Investment

An investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.