If total fixed expenses are $50,000, the target operating income is $10,000 and the contribution margin is $15 per unit, the sales needed to achieve the target operating income will be 4,000 units.

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The contribution margin is the difference between the selling price and the variable cost per unit. The target operating income is the desired profit after deducting all fixed and variable costs. To achieve the target operating income, the company needs to sell enough units to cover the fixed expenses and generate the desired profit. The number of units needed to achieve the target operating income can be calculated by dividing the target operating income by the contribution margin per unit. In this case, the target operating income is $10,000 and the contribution margin per unit is $15, so the number of units needed to achieve the target operating income is 10,000 / 15 = 4,000 units.

If Total Fixed Expenses Are $50,000, the Target Operating Income