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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

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 required revenue to achieve the target operating income and compute a contribution income statement to prove the totals.

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