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What are the sales dollars required to attain a target profit of 120000?
What are the sales dollars required to attain a target profit of $120,000? Sales dollars to attain the target profit = (Target profit + Fixed expenses)/Contribution margin ratio. Substituting the values, sales required = ($120,000 + $40,000)/0.40 = $400,000. via
How do you calculate required units to achieve target profit?
How do you calculate target sales per unit?
If you don't know your target sales volume, you simply need to add your fixed costs --- or overhead -- to your target profit and divide the sum by your cost per unit. For example, if you have a target profit of $75,000, fixed costs of $25,000 and a unit cost of $50, then your target sales volume would be 2,000 units. via
How many units would have to be sold each month to attain a target profit of $90000?
To get our target profit sales in units, we would take fixed costs plus our target profit and divide by the contribution margin per unit. $216,000 plus $90,000 gives us $306,000 which we divide by the $18 in contribution margin per unit to get 17,000 units. via
How many units do I need to sell to make a profit?
Divide the profit by the number of pieces you sold for your profit per unit. For example, if you sold 10,000 pieces with some volume discounts that earned a total revenue of $380,000, your total profit equals $160,000 once you subtract the $22 per unit cost of the product. via
What is the formula to explain sales dollars to earn a target income?
The dollar amount of target sales can be calculated as shown below. Target Sales in Dollars = Fixed Costs + Target Profit. Contribution Margin Ratio. via
What is the BEP formula?
To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. via
What does contribution per unit mean?
Contribution per unit is the residual profit left on the sale of one unit, after all variable expenses have been subtracted from the related revenue. For example, if a business has $10,000 of fixed costs and each unit sold generates a contribution margin of $5, the company must sell 2,000 units in order to break even. via
What is the formula to find profit?
The formula to calculate profit is: Total Revenue - Total Expenses = Profit. Profit is determined by subtracting direct and indirect costs from all sales earned. via
What is a target profit to sales ratio?
It is the sales volume in dollars that company needs to generate to earn a desired profit (target profit) in a particular business period in future. Target profit sales in units: Calculator generates this figure by dividing the total sales in dollars by the sales price per unit. via
How do you calculate target income?
What is target ROI pricing?
a pricing method in which a formula is used to calculate the price to be set for a product to return a desired profit or rate of return on investment assuming that a particular quantity of the product is sold. via
How many sales units are required to earn the target net profit?
To reach your target net income, you need to sell 150 units. Target net income uses your budgeted sales level. The difference between your budgeted level of sales (150 units) and your breakeven sales (50 units) is your margin of safety. via
How many units must be sold to earn a profit of $40 000?
Under CVP equation approach, we can find the number of units to be sold to obtain target profit by solving the equation where profits are equal to target profit (that is $40,000). Thus the target profit can be achieved by selling 750 units per month, which represents $187,500 in total sales ($250 × 750 units). via
How many units must the company sell to reach a target profit of $50000?
200 per unit contribution margin = 250. This means that 250 additional units must be sold. To break even requires 500 units to be sold, and to reach the desired profit of ? 50,000 requires an additional 250 units, for a total of 750 units. via