Which of the Following Equations Calculates Sales Dollars to Earn

question 152

Multiple Choice

Which of the following equations calculates sales dollars to earn target income?

• A) Sales Dollars to Earn Target Income = Fixed Costs / Contribution Margin Ratio
• B) Sales Dollars to Earn Target Income = (Total Fixed Cost + Target Income) / (Contribution Margin Ratio)
• C) Sales Dollars to Earn Target Income = Total Variable Costs / Contribution Margin per Unit
• D) Sales Dollars to Earn Target Income = (Fixed Costs + Target Income ) / (1 − Sales Ratio)
• E) Sales Dollars to Earn Target Income = Contribution Margin Ratio / Target Income

---

Definitions:

Long-Run Equilibrium

A state in economic analysis where all factors of production are variable, leading to companies operating at their most efficient level and no further economic profits in a perfectly competitive market.

Club Meeting

A scheduled gathering of members of a particular group or organization to discuss issues, plans, or activities related to the group's interests.

Attendance

The act of being present at a particular place or event.

Persons

Refers to individuals or entities that are capable of possessing rights and duties.