What does (Contribution Margin for Product 1 ´ Sales Volume for Product 1)+ (Contribution Margin for Product 2 ´ Sales Volume for Product 2)+ (Contribution Margin for Product n ´ Sales volume for Product n)- Fixed Costs equal?
A)Net sales
B)Target sales
C)Operating profit
D)Target profits

Question

Quizplus · Accepted Answer

The equation provided is the formula for calculating operating profit, which is equal to the total contribution margin (revenue minus variable costs) minus fixed costs. Therefore, the correct answer is C, operating profit.

What Does (Contribution Margin for Product 1 ´ Sales Volume