Target Profit Flashcards
1
Q
Target Profit Output formula
A
TPO = (Fixed costs + Target Profit) / (Contribution per unit)
2
Q
Target Profit Output Definition
A
The level of output needed to earn a target level of profit
3
Q
Target Profit formula
A
(Rearrange Target Profit Output formula)
4
Q
Target Price definition
A
The price at which a product should be sold in order to achieve the target profit
5
Q
Target Price formula
A
Target Price = (Total Fixed Costs + Total Variable Costs + Desired Profits)
÷
Number of units sold
