What calculation do you perform to find the target (in units of goods sold) once you know your target profit margin and your breakeven amount?
A)add all fixed costs to all variable costs and divide by production units
B)subtract variable costs from selling price and divide by fixed costs
C)add desired profit margin to other fixed costs and divide by margin per unit
D)multiply breakeven units by target profit margin

Question

Quizplus · Accepted Answer

To find the target units of goods sold to achieve a specific profit margin, you add the desired profit to the fixed costs (since breakeven covers fixed costs by definition) and then divide by the profit per unit (margin per unit). This gives you the total units needed to sell to achieve both covering fixed costs and earning the desired profit.

What Calculation Do You Perform to Find the Target (In