【A.09.01】How many sales (in quantity) are required to achieve a target profit?

Briefing Note
Reading comprehension is a skill that empowers lifelong learning intelligence for a better self.
The number of sales volume (quantity) required..

✅ ..to achieve a target profit depends on several factors, such as the variable cost per unit, the selling price per unit, and the total fixed costs associated with the business.

To calculate the number of sales volume (quantity) required..

✅ ..to achieve a target profit, you can use the following formula:

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For illustration..

✅ ..let’s say a company has total fixed costs of $10,000, a target profit of $5,000, a selling price per unit of $50, and a variable cost per unit of $30.

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