Answer the following questions using the information below:
Assume the following cost information for Fernandez Company:

-In CVP analysis, focusing on target net income rather than operating income:
A)will increase the breakeven point
B)will decrease the breakeven point
C)will not change the breakeven point
D)does not allow calculation of breakeven point

Question

Answer the following questions using the information below:
Assume the following cost information for Fernandez Company:
 
-In CVP analysis, focusing on target net income rather than operating income:
A)will increase the breakeven point 
B)will decrease the breakeven point 
C)will not change the breakeven point 
D)does not allow calculation of breakeven point

Quizplus · Accepted Answer

Target net income focuses on profit goals beyond breakeven, but the breakeven point itself remains unchanged as it is the level of sales where total revenues equal total costs, resulting in zero profit.

Answer the Following Questions Using the Information Below