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CVP would least likely be used in which of the following situations? A, Computing the volume...

CVP would least likely be used in which of the following situations?

A, Computing the volume of sales activity needed to reach a target profit goal.

B, Computing the number of sales clerk necessary to staff a new location.

C, Computing the maximum unit variable cost given estimates of sales volume and fixed costs.

D, Computing the maximum compensation amount when deciding whether to hire an additional production supervisor.

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Answer #1

Here Answer is A, Computing the volume of sales activity needed to reach a target profit goal.

As

As CVP analyse the relation among Cost Volume and Profit so with the help of CVP analysis we may calculated the sales required to achieve a given target of profit or loss with the help of contribution or contribution margin it can be calculated by following formula

Required Sale = (Fixed Cost+Target Profit)/Contribution margin per unit

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