Question: What is the difference between determining the break - even point in units and determining the required sales in units for a target net income?To
What is the difference between determining the breakeven point in units and determining the required sales in units for a target net income?To determine the breakeven point in units you only need to know the unit contribution margin and the fixed costs, whereas to determine the required sales in units for a target net income you also need to know the variable costs.To determine the breakeven point in units you need to know the variable costs and the fixed costs, whereas to determine the required sales in units for a target net income you need to know the target net income and the contribution margin ratio.To determine the breakeven point in units you need to know the unit contribution margin and the target net income, whereas to determine the required sales in units for a target net income you need to know the fixed costs and the variable costs.To determine the breakeven point in units you only need to know the unit contribution margin and the fixed costs, whereas to determine the required sales in units for a target net income you also need to know the target net income.
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