Target profit sales calculator

The Target profit sales calculator helps calculating the target profit, in units, given the target profit, the Total fixed expenses, the Per unit variable expenses and the Per unit sales price.

The relavent formulas are:

Profit = Number of units x (Per unit sales price-Per unit variable expenses) - Total fixed expenses

=> Number of units = (Profit + Total fixed expenses) / (Per unit sales price - Per unit variable expenses)

Where:

Target Profit: Is the amount of profit that a company desires to earn during a particular future period.

Total Fixed Expenses: Are the amount of fixed expenses that will be incurred in the period for which the company wants to earn a targeted profit.

Variable Eexpenses per Unit: Are the variable expenses that company needs to spend to manufacture and sell a unit of product. These are subject to change with the change in production and selling activities of the company.

Per Unit Selling Price: Is the price at which a unit of product is sold to customers.



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