Target Operating Income

Question

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 5 $100,000
• Unit price for sales 5 $80 • Variable cost per unit 5 $60
• Total fixed cost 5 $60,000

Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals. Create the required table in Microsoft Excel.

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