To Attain a Target Profit,the Total Gross Margin Generated from Sales

question 123

True/False

To attain a target profit,the total gross margin generated from sales must be sufficient to cover total fixed costs plus the target profit.

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Definitions:

Payroll Tax Expense

Payroll tax expense includes taxes imposed on employers or employees, and is based on the wages, salaries, and tips paid to the employees.

State Unemployment Taxes

Taxes imposed by state governments on employers to fund unemployment insurance benefits for laid-off workers.

Hourly Wage Rate

The amount of money paid for each hour of work performed.

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.