How Is Target Profit Volume Calculated

question 105

Multiple Choice

How is target profit volume calculated?

• A)The sum of fixed costs and target profit divided by contribution margin per unit.
• B)The sum of fixed costs and target profit divided by variable cost per unit.
• C)The sum of fixed costs and target profit divided by sales price per unit.
• D)None of the answers is correct.

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Definitions:

Excess Supply

A situation in the market where the quantity of a good offered by producers exceeds the quantity demanded by consumers at a given price, leading to surplus.

Binding Price Floor

A price floor established by the government that exceeds the market equilibrium price, resulting in an excess supply of products or services.

Market Outcome

is the result of economic activities within a market, determined by the interaction of supply and demand.

English Textbooks

Books specifically designed for the study or teaching of the English language.