If target sales in units is 70,000, total fixed expenses are $11,000, and the unit contribution margin is $0.20, what is the target operating income?

Question

Quizplus · Accepted Answer

To find the target operating income, we use the formula: Target Operating Income = (Unit Contribution Margin * Target Sales in Units) - Total Fixed Expenses. Plugging in the values: (0.20 * 70,000) - 11,000 = 14,000 - 11,000 = $3,000.

If Target Sales in Units Is 70,000, Total Fixed Expenses