Answer:
d.total fixed cost plus targeted profit divided by contribution margin ratio.
Explanation:
At the break-even point, a business does not make any profits or incur losses. Using the cost-volume-profit analysis concept CVP, break-even is calculated by dividing fixed cost by the contribution margin per unit. The contribution margin per unit is the price minus variable costs.
Sales made after the break-even point will add to the operating income of the business. At the break-even, both fixed and variable costs have been met. Operating income is calculated by subtracting the break-even level in dollars from the sales revenue. Therefore, operating income can be computed by adding the target sales to the break-even, then dividing by contribution margin per unit.
It should be noted that amount of revenue required to earn a targeted profit is equal to d.total fixed cost plus targeted profit divided by contribution margin ratio.
Revenue serves as the money generated by government from the public such as tax.
Therefore, amount of revenue required to earn a targeted profit is equal to d.total fixed cost.
Learn more about revenue at:
https://brainly.com/question/23103804
