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Required Rate of Sales equals the Rate of Fixed Costs, plus the Desired Rate of Profit divided by the selling price minus the variable costs per unit. This is represented with the following formula. You can calculate results electronically
with this formula, if you delete the numbers in the white boxes, and enter
your own numbers. Your calculated
result will appear in red, on the right.
After entering a new set of numbers, it is
necessary to click one of the calculation buttons (above or below), or click
with the mouse, or press the tab key.
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Enter the units you are using,
in the white box, to the left, such as per day, per week,
per month.
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Rate of Fixed Costs=$
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Selling Price=$
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Veriable Costs per unit=$
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Desired Rate of Profit=$
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Calculated result is presented below in red.
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Required
Rate of Sales=
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Rate of Fixed Costs + Desired Rate of Profit
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=
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Selling Price
Veriable Costs per unit
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