Question: Please show how to do it. Using the Contribution Margin method of computing target operating income, calculate the desired (target) operating income using the following:

Please show how to do it.

Using the Contribution Margin method of computing target operating income,
calculate the desired (target) operating income using the following:
1. If the desired (target) operating income is $6,400.
2. Unit price for sales is $400.
3. Variable cost per unit is $240.
4. Total fixed cost is $8,000.

Units Per Unit
Sold Cost Amount
Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Using the Contribution Margin Method of computing target operating income, calculate Contribution Margin Per Procedure using the following: 1. If the desired (target) operating income is $6,400 2....

Q:

Using the Contribution Margin method of computing target operating income, calculate the desired (target) operating income using the following: -If the desired (target) operating income is $6,400....

Q:

The denominator of the formula to calculate the contribution margin method of determining target operating income consists of the contribution margin per unit. What is the correct numerator in the...

Q:

3. XYZ Company has the following sales and cost data - sales $500,000, variable costs $300,000 and fixed costs $100,000. ABC Company has the following sales and cost data - sales $500,000, variable...

Q:

8. please answer fully and promptly very confused thank you!! A fumiture manufacturer specializes in wood tables. The tables seli for $140 per unit and incur $70 per unit in variable costs. The...

Q:

Sensitivity Analysis Sensitivity analysis is a "what if" proposition. It answers questions about what may happen if major assumptions change or if certain predicated events do not occur. The "what...

Q:

Using the Contribution Margin per Composite Unit from part 3.1, calculate the number of composite units TWM must sell to earn a monthly target income (profit) of $34,000. Calculate the number of...

Q:

A furnture manutacturer speciakzes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fosed costs per month The company dosires 10...

Q:

Figure 1 GENUINE MOTOR PRODUCTS Balance Sheet As of December 31, 20XW Assets Current assets $16,000,000 Capital assets Plant and equipment $20,000,000 Less: accumulated amortization 12,000,000 Net...

Q:

please help me And this all the information i got from my teacher, please help me Budgeting Project - Basic Instructions The project should be completed in Excel. When you have finished the project,...

Q:

How to calculate on excel : 4200 - 42(1+i) -1 -42(1+i) -2 -42(1+i) -3 -42(1+i) -4 -4326(1+i) -5 =0

Q:

Marco owns the following portfolio of stocks. What is the expected return on his portfolio? A) 4.7% B) 6.6% C) 8.4% D) 8.7%

Q:

Evaluate the integral. ln ( y ) / sqrt ( y ) dy with the upper bound 8 1 , and the lower bound 6 4

Q:

Q 1 . Who do you think is ultimately responsible for food allergens and accuracy in a case like this? The supplier? The manufacturer? The retailer? Q 2 . How do you think these events will affect...

Q:

In the Hewlett-Packard research, discuss what options the company has if it moves away from the performance pay scheme it has previously operated.

Q:

Look up the article that is the basis for focus on research 6.1. Why do you think that some of the respondents consider that their reward strategy does not operate in practice?

Q:

In case study 6.2, what would happen if business turned down and the company made little or no gains over a pay period?