Required sales in pesos to meet a target net income is computed by dividing A. Fixed costs plus target net income by contribution margin per unit. B. Variable costs plus target net income by contribution margin per unit. C. Fixed costs plus target net income by contribution margin ratio. D. Total costs plus target net income by contribution margin ratio.

Accounting (Text Only)
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Chapter21: Cost Behavior And Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.26EX: Items on variable costing income statement In the following equations, based on the variable costing...
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Required sales in pesos to meet a target net income is computed by dividing

A. Fixed costs plus target net income by contribution margin per unit.

B. Variable costs plus target net income by contribution margin per unit.

C. Fixed costs plus target net income by contribution margin ratio.

D. Total costs plus target net income by contribution margin ratio.

 

 

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