Target income sales

Target income sales

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::egin{align}& ext{Target Income Sales (in Units)} & &= frac{ ext{Fixed Costs}+ ext{Target Income{ ext{Unit Contribution\& ext{Target Income Sales (in Sales proceeds)} & &= frac{ ext{Fixed Costs}+ ext{Target Income{ ext{Contribution Margin Ratioend{align}

ee also

* Break-even
* Cost-Volume-Profit Analysis


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