Answer the following statements true (T) or false (F)
1. Target profit is the operating income that results when sales revenue minus variable and fixed costs equals management's profit goal.
2. Companies can use the contribution margin ratio approach to compute required sales in terms of units rather than in sales dollars.
3. The sales required to achieve a target profit can be determined by using the contribution margin, contribution margin ratio, or break even approaches.
4. The sales level at which operating income is zero is called the breakeven point.
5. The breakeven point represents the sales level at which the company's operating income is zero.
1. True
2. False
3. False
4. True
5. True
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