The Formula Used to Find the Number of Units That

question 208

Multiple Choice

The formula used to find the number of units that need to be sold in order to break even or generate a target profit is

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

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Definitions:

Armand Feigenbaum

An American engineer and quality expert who developed the concept of Total Quality Control.

Joseph M. Juran

A key figure in the field of quality management, known for his work on quality control and planning, quality improvement, and the Juran Trilogy.

Total Quality Management

A management approach to long-term success through customer satisfaction, where all members of an organization participate in improving processes, products, services, and culture.

Quality Control Staff

Personnel responsible for monitoring and inspecting products or services to ensure they meet predefined quality standards and identifying areas for quality improvement.