AACE International CCP Exam With Confidence Using Practice Dumps

The equivalent value of an investment alternative in today's dollars is referred to asNet Present Worth (NPW)or Net Present Value (NPV). NPW is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. It is a standard method used in capital budgeting to evaluate the profitability of an investment or project. By discounting future cash flows to the present value using the cost of capital, NPW provides a measure of how much value an investment is expected to add in today's terms.

To calculate the total sales volume needed to achieve a target net profit of $480, we first find the total required contribution margin:

Required Contribution Margin=Fixed Costs+Target Net Profit=6,000+480=6,480\text{Required Contribution Margin} = \text{Fixed Costs} + \text{Target Net Profit} = 6,000 + 480 = 6,480Required Contribution Margin=Fixed Costs+Target Net Profit=6,000+480=6,480

Using the contribution margin per unit of $0.10, we calculate the required sales volume:

Required Sales Units=6,4800.10=64,800 units\text{Required Sales Units} = \frac{6,480}{0.10} = 64,800 \text{ units}Required Sales Units=0.106,480​=64,800 units

Then, multiply by the unit sale price:

Total Sales Volume=64,800×0.50=$32,400\text{Total Sales Volume} = 64,800 \times 0.50 = \$32,400Total Sales Volume=64,800×0.50=$32,400

Therefore,$32,400is the required sales volume to achieve a target net profit of $480.

Quantitative datarefers to data that can be measured and expressed numerically. This type of data is often described using statistical methods, graphs, charts, and numerical summaries. It is distinct from qualitative data, which is descriptive and categorical. Thus, the most accurate description is thatQuantitative data can be described graphically or numerically.