If the Fixed Costs Are $2,400,targeted Operating Profits Is $1,200,selling

question 122

True/False

If the fixed costs are $2,400,targeted operating profits is $1,200,selling price per unit is $2,and the contribution margin ratio is 40%,then the required sales volume is 9,000 units.

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Definitions:

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue.

Cost of Goods Sold

The specific costs incurred in the production of a company's sold merchandise.

Gross Margin Ratio

A measure of a company's financial health, calculated as gross profit divided by net sales, showing the percentage of sales revenue that exceeds the cost of goods sold.

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through electronic tracking.