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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