If Fixed Costs Are $450,000 and the Unit Contribution Margin

question 30

True/False

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

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Definitions:

Holt-Winters Multiplicative Model

A forecasting technique that accounts for seasonality, trend, and error in time series data, using multiplicative methods to adjust for these components.

Double Moving Average Model

A forecasting technique that utilizes two moving averages of a time series to identify trends by signaling when the averages cross each other.

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.

Trend

A general direction in which something is developing or changing over time.