If target sales in units is 75,000, total fixed expenses are $12,000, and the unit contribution margin is $0.20, what is the target operating income?

Name: If target sales in units is 75,000, total fixed expenses are $12,000, and the unit contribution margin is $0.20, what is the target operating income?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The target operating income is calculated as (Target Sales in Units * Unit Contribution Margin) - Total Fixed Expenses. So, (75,000 * $0.20) - $12,000 = $3,000.

If Target Sales in Units Is 75,000, Total Fixed Expenses