Question

The mathematical equation for computing required sales to meet target net income is: a. Required Sales - Variable Costs = Target Net Income. b. Required Sales - Variable Costs - Fixed Costs = Target Net Income. c. Required Sales + Fixed Costs = Target Net Income. d. Required Sales + Variable Costs + Fixed Costs = Target Net Income.

Answer 1

Answer:

b. Required Sales - Variable Costs - Fixed Costs = Target Net Income

Step-by-step explanation:

solution

we get here required sale for meet our target net income that is express as

Required Sales is sum of Variable Costs and Fixed Costs and Target Net Income i.e

Required Sales = Variable Costs + Fixed Costs + Target Net Income  ...................1

so it can be express as

Required Sales - Variable Costs - Fixed Costs = Target Net Income

so correct option is b. Required Sales - Variable Costs - Fixed Costs = Target Net Income