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:

\begin{align} &\text{Target Income Sales (in Units)} & &= \frac{\text{Fixed Costs}%2B\text{Target Income}}{\text{Unit Contribution}}\\ &\text{Target Income Sales (in Sales proceeds)} & &= \frac{\text{Fixed Costs}%2B\text{Target Income}}{\text{Contribution Margin Ratio}} \end{align}

See also