Solution-How to find target net income and margin of safety

How to find target net income and margin of safety

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Reference no: EM131729808

How to find: Target net income,margin of safety, and target operating income? an answer to this will help in revising for a paper which is coming in 30 minutes time

Target net income (TNI)
TOI - (TOI x Tax rate)

Target net income (TNI)
TOI x (1 - tax rate)

Margin of safety in dollars
Budgeted (or actual) Revenues - Breakeven revenues

Margin of safety (in units)
Budgeted (or actual) sales quantity - Breakeven quantity

Margin of safety
Budgeted revenues - Breakeven revenues

Reference no: EM131729808

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How to find target net income and margin of safety

Reference no: EM131729808

Reference no: EM131729808

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