Target income sales



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:
 * $$\begin{align}

&\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}} \end{align}$$