If Target Sales in Units Is 75,000, Total Fixed Expenses

question 13

Multiple Choice

If target sales in units is 75,000, total fixed expenses are $12,000, and the unit contribution margin is $0.20, what is the target operating income?

• A) $27,000
• B) $15,000
• C) $2,400
• D) $3,000

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material, labor, and overhead costs.

Gross Profit Rate

A financial metric that measures a company's gross profit as a percentage of its net sales, indicating the efficiency of production and pricing.

Cost Of Goods Sold

The costs directly related to the creation of products sold by a company, including expenses for raw materials and wages.

Worksheet

A paper or electronic tool used by accountants to gather information for adjusting entries and preparing financial statements.