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TARGET OPERATING INCOME

TARGET OPERATING INCOME.

Acme Medical Supply Company desires a target operating income amount of $100,000, with assumptions inputs as follows:

  • Deisred (target) operating income amount = $100,000
  • Unit Price for sales = $80
  • Variable cost per unit = $60
  • Total fixed cost = $60,000

Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals.

TARGET OPERATING INCOME

Solution:

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