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The formula for calculating the sales dollars required to meet target operating income is

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The formula for calculating the sales dollars required to meet target operating income is

The formula for calculating the sales dollars required to meet target operating income is

▸ (contribution margin plus target operating income) divided by total fixed costs.

▸ (total fixed costs plus target operating income) divided by contribution margin ratio.

▸ (total fixed costs plus target operating income) divided by contribution margin per unit.

▸ (total fixed costs plus target operating income) divided by total variable costs.

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Managerial Accounting

Edition: 4^th

Author: Davis

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mhbtelc Author

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Correct

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