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State whether the statement below is True or False?

If a company requires a profit of $30,0 (instead of breaking even), the $30,0 should be combined with the fixed expenses in order to compute the point at which the company will earn $30,0.

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/03/11
Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

true.

the formula 

projected income or Sale revenue= ( Fixed Cost Plus Desired Profit) /Contribution per Unit

Muhammad Ikram Mansoor Khokhar
by Muhammad Ikram Mansoor Khokhar , Financial Planning & Analysis Teamleader , Nesma Trading Co. Ltd.

True,adding $30 to fixed cost and calculating the breakeven point in quantity and amount will give you the sales in units  that a business needs to generate in order to make a profit of $30

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