Page 8 - BE Theory Note
P. 8
Target Profit
If a business wants to make a certain level of profit, a formula can be used.
For example, a business wants to make a £50,000 profit based on the following data.
How many units will it need to sell to do this?
The formula to use is
Fixed Costs + Target Profit
Contribution
£10,000 + £50,000
£50
=1,200 units
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