Target Profit Calculator Tool

Target Profit Calculator

Target Profit Calculator

Target Profit Calculator

Component Description
Fixed Costs The total fixed costs that do not change with the level of output.
Variable Costs The total variable costs that vary with the level of output.
Sales Price per Unit The price at which each unit is sold.
Target Profit The desired amount of profit to be achieved.
Break-Even Point The level of sales at which total revenue equals total costs, resulting in zero profit.
Formula Break-Even Point = (Fixed Costs + Target Profit) / (Sales Price per Unit – Variable Costs per Unit)
Purpose Used to determine the required sales volume to achieve a specific target profit.

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