If Target Sales in Units Is 80,000,total Fixed Expenses Are

question 159

Multiple Choice

If target sales in units is 80,000,total fixed expenses are $10,000,and the unit contribution margin is $0.30,what is the target operating income?

• A)$34,000
• B)$14,000
• C)$24,000
• D)$3,000

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Definitions:

Perpetual Inventory System

A method of accounting that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.

Cost Of Goods Sold

The immediate expenses linked to manufacturing the products a company sells, encompassing the price of materials and the labor needed to produce the item.

Merchandise Sold

This represents the goods that have been sold and delivered to customers.

Defective Merchandise

Goods that fail to meet quality standards and are therefore returned, repaired, or sold at a discounted price.