The Formula Used to Find the Number of Units That

question 208

Multiple Choice

The formula used to find the number of units that need to be sold in order to break even or generate a target profit is

• A) (fixed expenses + operating income) ÷ contribution margin ratio.
• B) (fixed expenses + operating income) ÷ contribution margin per unit.
• C) (fixed expenses - operating income) ÷ contribution margin ratio.
• D) (fixed expenses - operating income) ÷ contribution margin per unit.

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