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Required Rate of Sales equals the Rate of Total Fixed Costs,
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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Rate of Total Fixed Costs=$
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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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Selling
Price=$
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Veriable Costs per unit=$
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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 Total Fixed Costs
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=
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Selling Price -
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Veriable Costs per unit
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