Target Profit Flashcards
1
Q
What does target profit mean?
A
Calculating the level of sales or amount of revenue needed to achieve a target level of profit.
2
Q
Level of sales needed to achieve target profit =
A
Contribution per unit
3
Q
Contribution sales ratio =
A
Selling price
4
Q
Revenue needed to achieve target profit figure =
A
Contribution Sales Ratio
