Target income sales - Alchetron, The Free Social Encyclopedia

In cost accounting, Target Income Sales are the sales necessary to achieve a given Target Income (or Targeted Income). It can be measured either in units or in currency (sales proceeds), and can be computed using contribution margin similarly to break-even point:

Target Income Sales (in Units) = Fixed Costs + Target Income Unit Contribution Target Income Sales (in Sales proceeds) = Fixed Costs + Target Income Contribution Margin Ratio

References

Target income sales Wikipedia

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