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 the break-even point:^[1]

${\displaystyle {\begin{aligned}&{\text{Target Income Sales (in Units)}}&&={\frac {{\text{Fixed Costs}}+{\text{Target Income}}}{\text{Unit Contribution}}}\\&{\text{Target Income Sales (in Sales proceeds)}}&&={\frac {{\text{Fixed Costs}}+{\text{Target Income}}}{\text{Contribution Margin Ratio}}}\end{aligned}}}$