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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Definitions:

Ideology

A comprehensive set of beliefs, values, and ideas that an individual or group holds, which influences perceptions and behaviors.

Economic Exchanges

Transactions involving the transfer of goods, services, or money between parties, forming the basis of economic systems.

Social Structures

The complex framework of societal institutions (like governments, economies, and education systems) and social practices (norms, laws, and roles) that make up a society.

Fetishism of Commodities

A term from Marxist theory describing the way in which the social relationships involved in production are expressed as relationships between commodities, obscuring the labor that went into them.