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The Formula for Calculating Units Required to Meet Target Operating

Question 67

Multiple Choice

The formula for calculating units required to meet target operating income is


A) (total fixed costs plus target operating income) divided by contribution margin per unit.
B) total fixed costs divided by (contribution margin plus target operating income) .
C) contribution margin per unit divided by (total fixed costs plus target operating income) .
D) (contribution margin plus target operating income) divided by total fixed costs.

Correct Answer:

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