Which of the Following Equations Calculates Sales Dollars to Earn

Multiple Choice

Which of the following equations calculates sales dollars to earn target income?

A) Sales Dollars to Earn Target Income = Fixed Costs / Contribution Margin Ratio
B) Sales Dollars to Earn Target Income = (Total Fixed Cost + Target Income) / (Contribution Margin Ratio)
C) Sales Dollars to Earn Target Income = Total Variable Costs / Contribution Margin per Unit
D) Sales Dollars to Earn Target Income = (Fixed Costs + Target Income ) / (1 − Sales Ratio)
E) Sales Dollars to Earn Target Income = Contribution Margin Ratio / Target Income