The amount of revenue required to earn a target profit is equal to Total fixed cost divided by contribution margin Total fixed cost divided by the contribution margin ratio Targeted profit divided by the contribution margin ratio Total fixed cost- plus targeted profit divided by contribution margin ratio Targeted profit divided by the variable cost ratio

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8MCQ: The contribution margin is the a. amount by which sales exceed total fixed cost. b. difference...
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  • The amount of revenue required to earn a target profit is equal to
  1. Total fixed cost divided by contribution margin
  2. Total fixed cost divided by the contribution margin ratio
  3. Targeted profit divided by the contribution margin ratio
  4. Total fixed cost- plus targeted profit divided by contribution margin ratio
  5. Targeted profit divided by the variable cost ratio
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