When Sales Dollars Are Used as the Measure of Volume

question 36

Multiple Choice

When sales dollars are used as the measure of volume in the cost-volume-profit equation,the focus is on solving for total revenue required to break even or a target profit rather than total units.Target Profit in Sales Dollars equals which of the following?

• A)total contribution margin divided by total sales.
• B)unit contribution margin divided by unit sales price.
• C)total fixed costs divided by the contribution margin ratio.
• D)(sum of total fixed costs plus target profit)divided by the contribution margin ratio.