Target profit is the operating income that results when sales revenue minus variable and fixed costs equals management's profit goal.

Name: Target profit is the operating income that results when sales revenue minus variable and fixed costs equals management's profit goal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is an accurate definition of target profit. It is the amount of operating income a company aims to achieve by adjusting its pricing and cost structure to meet the necessary profit margin.

Target Profit Is the Operating Income That Results When Sales