The Formula That Can Be Used to Calculate Sales Dollars

Multiple Choice

The formula that can be used to calculate sales dollars necessary in order to earn a target income is

A) (Fixed costs + Contribution margin) /(Contribution margin ratio) .
B) (Fixed costs + Target income) /(Contribution margin ratio) .
C) (Fixed costs + Variable costs) /(1 - Variable cost ratio) .
D) (Fixed costs + Target income ) /(1 - Sales ratio) .
E) All of these are correct.