Target Operating Income

Target Operating Income

Acme Medical Supply Company desires a target operating income amount of $100,000,

with assumption inputs as follows:

• Desired (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.

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