The Dollar Amount of Sales Needed to Achieve a Targeted

question 47

True/False

The dollar amount of sales needed to achieve a targeted after-tax income is computed by dividing the sum of fixed costs plus the desired after-tax income plus income taxes by the contribution margin ratio.

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Definitions:

Not-For-Profit Organizations

Organizations that operate for purposes other than generating profit, often focusing on social, educational, or charitable activities.

Deferral Method

An accounting technique that involves delaying the recognition of income or expenses until a later accounting period.

Unrestricted Contributions

Donations that can be used by the recipient for any purpose, without any constraints or designated restrictions by the donor.

NFP Accounting

Accounting practices specific to Not-For-Profit organizations, focusing on fund accounting, donor restrictions, and reporting financial performance in a manner distinct from profit-oriented businesses.