TARGET OPERATING INCOME

Acme Medical Supply Company desires a target operating income amount of $100,000, with assumptions inputs as follows:

• Deisred (target) operating income amount = $100,000
• Unit Price for sales = $80
• Variable cost per unit = $60
• Total fixed cost = $60,000

Compute the required revenue to achieve the target operating income and compute a contribution income statement to prove the totals.