|Your target profit:|
|Total fixed expenses:|
|Per unit variable expenses:|
|Per unit sales price:|
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How to use target profit calculator:
Target profit calculator requires the following inputs:
It is the amount of profit that a company desires to earn during a particular future period.
Total fixed expenses:
You need to enter into this field the amount of fixed expenses that will be incurred in the period for which the company wants to earn a targeted profit.
Variable expenses per unit:
This field should be filled with 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:
The price at which a unit of product is sold to customers.
Outputs to be generated:
The calculator will generate the following outputs for you:
Target profit sales in dollars:
It is the sales volume in dollars that company needs to generate to earn a desired profit (target profit) in a particular business period in future.
Target profit sales in units:
The sales volume in units needed to generate the target profit. Calculator generates this figure by dividing the total sales in dollars by the sales price per unit.
Target profit percentage:
This output shows the target profit as a percentage of sales revenue needed to earn the target profit. Target profit percentage can be seen as the projected net profit ratio.