To Find the Number of Units That Need to Be

question 180

Multiple Choice

To find the number of units that need to be sold in order to breakeven or generate a target profit, the formula used is

• A)(fixed expenses + operating income)÷ contribution margin per unit.
• B)(fixed expenses + operating income)÷ contribution margin ratio.
• C)(fixed expenses - operating income)÷ contribution margin ratio.
• D)(fixed expenses - operating income)÷ contribution margin per unit.

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Definitions:

Broken-out Section

A drawing technique that removes a part of the object to reveal internal features not visible from the outside.

Offset Section

A portion of a drawing or structure that is displaced to show details not visible in the regular view.

Abbreviation C'BORE

The shorthand notation for "Counterbore," indicating a cylindrical flat-bottomed hole that enlarges another hole, often to hide a fastener head.

Cutting-plane Line

A line on a drawing that indicates the imaginary plane where a part is cut to reveal internal features.