If Targeted Sales Volume in Units Is 124,600, Total Fixed

question 34

Multiple Choice

If targeted sales volume in units is 124,600, total fixed costs are $15,600, and contribution margin per unit is $0.30, then the targeted net income is

• A) $37,380.
• B) $32,700.
• C) $15,600.
• D) $21,780.

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Definitions:

Futures Positions

Futures positions are commitments to buy or sell a specified amount of a commodity, currency, or financial instrument at a specified price on a set future date.

Marking To Market

Marking to market is an accounting practice where assets and liabilities are adjusted to their current market values rather than their book values.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Variation Margin Check

A financial safeguard measure in futures trading that involves calculating and settling the gains or losses on open contracts to ensure enough capital exists to cover potential losses.