The formula for target sales is:
A. (Total fixed costs + Target profit)/Contribution margin ratio
B. (Total variable costs + Total fixed costs)/Unit contribution margin
C. (Total variable costs + Total fixed costs)/Contribution margin ratio
D. (Total fixed costs + Target profit)/Unit contribution margin
Answer: A
You might also like to view...
_________ is designed to correct employee behavior, rather than just punish it.
A. Institutional discipline B. Correctional analysis C. Progressive discipline D. Review and adjudication E. Alternative dispute resolution
Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. The weighted-average unit contribution margin for Ramirez is
A. $50 B. $71 C. $80 D. $81
Theoretically, market values of assets are better for evaluating the creation of shareholder wealth
than accounting numbers, but accounting numbers are used because they are more readily available. Indicate whether the statement is true or false
All of the following are potential disadvantages of short-term debt EXCEPT
A) short-term debt must be paid back more quickly than long-term debt. B) uncertainty of interest costs because short-term debt must be replaced often. C) short-term debt generally has a higher interest cost than long-term debt. D) a greater risk of illiquidity than long-term debt.