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

Target operating income | Business & Finance homework help

Revenue Required to Achieve Target Operating Income:

Target Operating Income = $150,000
Contribution Margin = 20%

($150,000 ÷ 0.20) = $750,000

Contribution Income Statement:

Revenue $750,000
Variable Costs $(500,000)
Contribution Margin $250,000
Fixed Costs $(100,000)
Operating Income $150,000