The Formula Used to Find the Sales Revenue (Sales in Dollars)

question 32

Multiple Choice

The formula used to find the sales revenue (sales in dollars) needed 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:

Lessen Competition

A situation or strategy in which there is a reduction in the intensity of competitive forces within a market or industry.

Patent Legislation

Laws that grant inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention without permission.

Federal Trade Commission

A federal agency established to promote consumer protection and the elimination and prevention of anticompetitive business practices.

Wheeler-Lea Act

A United States law that amended the Federal Trade Commission Act to prohibit unfair or deceptive acts in commerce.