Target income sales

Image:CVP-TIS-FC-Contrib-PL.svg equals Fixed Costs plus Target Income.]]

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:

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&\text{Target Income Sales (in Units)} & &= \frac{\text{Fixed Costs}+\text{Target Income}}{\text{Unit Contribution}}\\

&\text{Target Income Sales (in Sales proceeds)} & &= \frac{\text{Fixed Costs}+\text{Target Income}}{\text{Contribution Margin Ratio}}

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