To determine the number of units needed to earn a target profit,divide the target contribution margin by the contribution margin per unit.Divide total fixed costs plus profit by the contribution margin per unit.
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Q2: Managers can use cost-volume-profit analysis to evaluate
Q3: Target units equals fixed costs plus target
Q4: An important assumption in multiproduct cost-volume-profit analysis
Q5: The break-even point is the point at
Q6: In multiproduct cost-volume-profit analysis,a break-even point must
Q7: The target sales level equals fixed costs
Q8: The degree of operating leverage can be
Q9: Contribution margin is equal to fixed costs
Q10: Break-even units can be found by dividing
Q11: Degree of operating leverage is calculated by
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