What Formula Is Used to Calculate the Sales Dollars Needed

question 151

Multiple Choice

What formula is used to calculate the sales dollars needed to earn a desired profit?

• A)(fixed costs + contribution margin)/(1 − variable cost ratio)
• B)(fixed costs + desired profit)/(1 − variable cost ratio)
• C)(fixed costs + variable costs)/(1 − variable cost ratio)
• D)(fixed costs + desired profit)/(1 − sales ratio)

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Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, for medical diagnosis.

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A condition resulting from excessive loss of body water, leading to imbalances in essential minerals and electrolytes.