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Author Question: The formula for calculating units required to meet target operating income is (Read 95 times)

meganh99

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Question 1

Barbara's Boutique wants to know what it takes to have $20,000 in operating income. If her selling price is $20, variable cost is $8 and fixed costs total $40,000, what must her sales revenue be in order to reach her goal?
◦ $33,340
◦ $100,000
◦ $50,000
◦ $150,000

Question 2

The formula for calculating units required to meet target operating income is
◦ (total fixed costs plus target operating income) divided by contribution margin per unit.
◦ (contribution margin plus target operating income) divided by total fixed costs.
◦ total fixed costs divided by (contribution margin plus target operating income).
◦ contribution margin per unit divided by (total fixed costs plus target operating income).


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Marked as best answer by meganh99 on Feb 5, 2023

avelasquez

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meganh99

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Reply 2 on: Feb 5, 2023
Excellent


hollysheppard095

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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