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.
Correct Answer:
Verified
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