JokerandHarley3746 JokerandHarley3746

24-03-2020
Computers and Technology

contestada

A target income refers to:

a. Income at the minimum contribution margin.
b. Income from the most recent period.
c. Income only in a multiproduct environment.
e. Income planned for a future period.
f. Income at the break-even point.

Respuesta :

fabulous4tune fabulous4tune

29-03-2020

Answer:

e. Income planned for a future period

Explanation:

A target income is an income planned for a future period to be used. The target income can be determined by cost-volume-profit analysis.

The target income can be calculated by;

Multiplying the projected number of units to be sold by their projected contribution margin to arrive at the total contribution margin for the period.
Then subtract the total amount of projected fixed cost for the period.

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