If a Firm Has $4 00 000 in Fixed Costs

question 31

True/False

If a firm has $4 00 000 in fixed costs, a unit contribution margin of $60 and a target net profit of $80 000, the target sales volume to achieve this profit would be 8000 units.

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Definitions:

North American Management

A management approach typically observed in organizations located in North America, characterized by its emphasis on decentralization, flexibility, and individual initiative.

Autonomy and Entrepreneurship

This refers to the capacity of individuals or teams to make independent decisions and pursue innovative ventures within the constraints of an organization.

Closeness of Supervision

The degree to which managerial oversight and control are applied in the oversight of employee tasks and responsibilities.

Productivity Through People

A management philosophy emphasizing the empowerment and involvement of employees in decision-making processes to improve performance and productivity.