Target Profit Analysis: Achieving Profit Goals, 4 Components
By dividing the target profit plus fixed costs ($100,000 + $80,000) by the contribution margin per unit ($200), we find that Adam needs to sell 900 units. To calculate the required sales volume, we can adapt the formula used for break-even analysis. By setting the profit equal to $100,000, we can rearrange the formula to […]
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