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Target Operating Income Acme Medical Supply Company desires a target operating income amount of $100,000,...

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Accounting

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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