To find the sales revenue (sales in dollars)needed in order to breakeven or generate a target profit, the formula used is

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The formula used to calculate sales revenue needed to break even or generate a target profit is (Fixed Expenses + Operating Income) ÷ Contribution Margin Ratio. This formula takes into account both fixed expenses and variable expenses (represented by contribution margin ratio), which allows for a more accurate calculation of the required sales revenue. Option A and D do not take the contribution margin ratio into account, while option C uses a negative operating income, which is unlikely in a breakeven or profit calculation.

To Find the Sales Revenue (Sales in Dollars)needed in Order