amount required to attain a particular income level or target net income. TARGET INCOME sales volume is computed as:

Target Income Sales Valume = ( Fixed Costs + Target Income ) / Unit Contribution Margin

For example, assume that unit contribution margin is $15, fixed costs are $15,000, and target income is $15,000.Target income sales volume = ($15,000 + $15,000) / $15 = 2000 units. This means that 2000 units need to be sold to make $15,000 profit.