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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 = $100,000
- Unit price for sales = $80
- Variable cost per unit = $60
- Total fixed cost = $60,000
Compute the target operating income and compute a contribution income statement to prove the totals.
Be sure to cover the following in your contribution income statement:
- Revenue
- Variable costs
- Contribution margin
- Fixed costs
- Desired (Target) Operating Income =
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