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:

Hundred Years' War

A prolonged series of conflicts from 1337 to 1453 between England and France, marked by several periods of warfare and truces.

England

A country that is part of the United Kingdom, located on the island of Great Britain, known for its rich history, cultural heritage, and major contributions to arts, science, and democracy.

Encomienda

A labor system in Spanish America giving settlers the right to tax local Indigenous people or to demand their labor in exchange for protecting them and teaching them Christianity.