Examlex

Solved

If a Company Wants to Know How Many Units of a Certain

question 136

True/False

If a company wants to know how many units of a certain product it must sell to make a desired level of profit,it should add the amount of profit to the numerator in the breakeven analysis.


Definitions:

Accounts Receivable Turnover

A financial metric indicating how efficiently a company collects on the credit it extends to customers by measuring the number of times average accounts receivable are collected during a period.

Net Credit Sales

Net credit sales is the total revenue generated from sales made on credit, after subtracting any returns or allowances.

Average Accounts Receivable

The average amount of money owed to a company by its customers for goods or services sold on credit over a specific period of time.

Earnings per Share

A financial metric that indicates how much profit a company makes for each share of its stock, calculated as net income divided by the number of outstanding shares.

Related Questions