7. Assignment Exercise 17-3 Target Operating Income (15 Marks)

Acme Medical Supply Company desires a target operating income amount of $100,000, with assumption inputs as follows:

Desired (target) operating income amount = $100,000

Unit price for sales = $80

Variable cost per unit = $60

Total fixed cost = $60,000

Compute the target operating income and compute a contribution income statement to prove the totals.