If Total Fixed Expenses Are $50,000,the Target Operating Income Is

question 119

True/False

If total fixed expenses are $50,000,the target operating income is $10,000 and the contribution margin is $15 per unit,the sales needed to achieve the target operating income will be 4,000 units.

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Definitions:

Expected Annual Orders

An estimate of the quantity of orders a company anticipates receiving within a one-year period based on market analysis and sales forecasts.

Present and Potential Sales

Analysis or estimation of current sales figures combined with the forecasted or potential sales in the future.

Relationship Selling

Relationship selling is a sales approach that focuses on creating and maintaining long-term relationships with customers rather than just focusing on immediate sales.

Follow-up

The act of continuing communication or action with a prospect or customer after an initial interaction or sale.