What Formula Calculates the Number of Units Needed to Earn

question 70

Multiple Choice

What formula calculates the number of units needed to earn a desired profit?

• A) (fixed costs + variable costs)/sales
• B) (fixed costs + desired profit)/sales
• C) (fixed costs + desired profit)/contribution margin per unit
• D) (fixed costs + variable costs)/contribution margin per unit

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Definitions:

Order Quantity

The number of units of a product ordered for production or purchase at one time.

Probability Of A Stockout

The probability of a stockout refers to the likelihood of an item being unavailable for sale or use due to inadequate inventory levels, often impacting customer satisfaction.

Placement And Receipt

The processes involved in positioning goods within a storage or retail facility and acknowledging their delivery or availability.