In cost accounting, target income sales are the sales necessary to achieve a given target income (or targeted income). It can be measured either in units or in currency (sales proceeds), and can be computed using contribution margin similarly to break-even point:
Target Income Sales (in Units) = Fixed Costs + Target Income Unit Contribution Target Income Sales (in Sales proceeds) = Fixed Costs + Target Income Contribution Margin Ratio {\displaystyle {\begin{aligned}&{\text{Target Income Sales (in Units)}}&&={\frac {{\text{Fixed Costs}}+{\text{Target Income}}}{\text{Unit Contribution}}}\\&{\text{Target Income Sales (in Sales proceeds)}}&&={\frac {{\text{Fixed Costs}}+{\text{Target Income}}}{\text{Contribution Margin Ratio}}}\end{aligned}}}
See also Break-even Cost–volume–profit analysis