Use Scenario in Chapter 18 on pages 220 - 221 for these 3 formulas: 1. Target Operating Income equals fixed costs + target operating costs (56250, 57500, & 58750) divided by contribution margin per unit. This question requires 3 answers (one for each target operating costs). a. b. bricolore the variable costs per unit Sensitivity Analysis Tools 221 Target Operating Income Worksheet Variable Cost Fixed Cost (A) (B) (C) At $50 Sales Price per Unit, $$ Sales Required to Earn Operating Income of: $5,000 $6,250 $7,500 $6,250 $7.500 $8.750 per Unit $30 $30 $1,000 $1,500 ontains her first set of assumptions: $1,000 fixed cost for the booth rental and $30 basket. NOY e-mails Julie with news: due to a recent renova- I will cost Julie $1,500 for the $1.500 fixed Sensitivity Analysis Tools 221 Exhibit 18-3 Target Operating Income Worksheet Variable Cost Fixed Cost $1,000 $1,500 per Unit (A) (B) (C) At $50 Sales Price per Unit, $$ Sales Required to Earn Operating Income of $5,000 $6,250 $7,500 $6,250 $7,500 $8,750 unit less (1) (2) $30 $30 number 1 contains her first set of assumptions: $1,000 fixed cost for the booth rental and $30 variable cost for each basket. The convention center representative now e-mails Julie with news: due to a recent renova- tion of the convention center, booth rental fees have increased. It will cost Julie $1.500 for the booth. She then adds line 2 to her worksheet with a second set of assumptions: $1,500 fixed cost for the booth rental and the same $30 variable cost for each basket. She is now prepared to discuss her findings with her boss. Ows: Rreal Iron Point Using the Contribution Marie Method