4. When estimating breakeven sales that includes a profit target you must (a) Ad

Question

4. When estimating breakeven sales that includes a profit target you must (a) Add the desired profit to Total Fixed Costs and solve (b) Solve the breakeven formula for sales then add the profit target (c) Calculate breakeven quantity, multiply by price, and then add the profit target (d) None of the above 5. Monitoring and evaluation of activities is the (a) Planning task of management. (b) Organizing (c) Directing (d) Controlling (e) None of the above 6 The most basic need in Maslow's Needs Heirarchy is. (a) Safety (b) Survival (c) Belongingness (d) None of the above 7. According to Herzberg hygeinic factors are (a) Conditions necessary for good social, mental and physical health (b) Motivating to employees (c) Pain relievers (d) All of the above 8. Steps in risk management decision include(s) (a) Identifying possible sources of risk (b) Evaluating potential risks and returns (c) Choosing alternatives (d) All of the above 9. According to Maslow ego status is a need (a) Relating to belongingness Relating to self esteem c) Relating to self actualization (d) None of the above 10. The following is a key aspect of transformational leadership (a) Inspirational motivation (b) Idealized influence (c) Intellectual stimulation (d) All of the above

Explanation / Answer

Question 4

In case the estimates of break-even sales have to be calculated by including a profit target then in that case the profit target or desired profit should first be added to total fixed cost and then break-even sales should be calculated in regular manner.

So, when estimating break-even sales that includes a profit target, one must add the desired profit to total fixed cost and solve.

The correct answer is the option (a).

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