A Company Requires $1,360,000 in Sales to Meet Its Net

question 82

Multiple Choice

A company requires $1,360,000 in sales to meet its net income target.Its contribution margin is 30%,and fixed costs are $240,000.What is the target operating income?

• A)$408,000
• B)$312,000
• C)$560,000
• D)$168,000

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Definitions:

Management Responsibilities

The duties and obligations that managers have to oversee and guide their organization effectively.

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from their personal assets.

Joint Stock Company

A partnership agreement in which company members hold transferable shares, whereas all the goods of the company are held in the names of the partners.

Partnership Agreement

A legal document that specifies the rights, responsibilities, and profit and loss distribution among business partners.