The Formula for Calculating Units Required to Meet Target Operating

question 86

Multiple Choice

The formula for calculating units required to meet target operating income is

• A)Total fixed costs plus target operating income divided by contribution margin per unit.
• B)Total fixed costs divided by contribution margin plus target operating income.
• C)Contribution margin per unit divided by total fixed costs plus target operating income.
• D)Contribution margin plus target operating income divided by total fixed costs.

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