Question

Cost volume profit can be used to calculate the sales dollars or sale units needed to achieve a target profit. Which statement is​ false?
A. The only way to calculate the sales revenue needed to achieve a target profit is by using the formula provided in class
B. Once the units are determined to achieve a target​ profit, simply multiply it by the sales price per unit to obtain the sales revenue needed to achieve the target profit.
C. To calculate the units needed to achieve a target profit simply calculate the breakeven in units but change the fixed expenses in the formula to fixed expenses plus the target profit.
D. To calculate the sales needed to achieve a target profit simply calculate the breakeven in dollars but change the fixed expenses in the formula to fixed expenses plus the target profit.

Answer 1

Answer:

A. The only way to calculate the sales revenue needed to achieve a target profit is by using the formula provided in class

Explanation: