If Total Fixed Expenses Are $50,000, the Target Operating Income

question 222

True/False

If total fixed expenses are $50,000, the target operating income is $10,000 and the contribution margin is $15 per unit, the sales needed to achieve the target operating income will be 4,000 units.

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Definitions:

Placebo Effects

Positive changes in health perceived after taking a treatment with no therapeutic effect, attributed to the individual's belief in the treatment's efficacy.

Certification

Official recognition or guarantee that a person has passed an examination or achieved a certain standard of knowledge or skill.

Personal Warmth

The characteristic of an individual that reflects friendliness, kindness, and affection towards others.

Prospective Therapist

An individual in the process of gaining the necessary qualifications, training, and accreditation to practice therapy.