Thus the target profit can be achieved by selling 750 units per month, which represents $187,500 in total sales ($250 × 750 units). This equation is also extensively used to calculate break even point. When break even point is calculated the value of profit in the equation is taken equa...
声明: 本网站大部分资源来源于用户创建编辑，上传，机构合作，自有兼职答题团队，如有侵犯了你的权益，请发送邮箱到feedback@deepthink.net.cn 本网站将在三个工作日内移除相关内容,刷刷题对内容所造成的任何后果不承担法律上的任何义务或责任
1. Gross profit%= GP/Sales *100 2. Net profit %= NPAT (Profit for the year)/Sales*100 3. ROCE= NPAT/Average Equity Efficiency Ratios 1. Average Inventories Turnover period= Average inventory/COGS *365 2. Average settlement period for AR= Average AR/Credit Sales *365 3. Average settlem...
Target costing is the idea of engineering a product around a price point, making sure to keep costs low and profits present. Target costing is useful in the formula for total price, which is that total price should equal the targeted cost plus profit. Smartphones offer a great example of ...
the sharing formula gives the contractor theopportunity to increase profit either by reducing cost or by artificially inflating the target cost.The use of the open book is expensive, time consuming, and raises issues of trust in thereliability of data but also about their possible use for other...
How is Target Net Income Formulated? As previously mentioned, the target net income formula is used to calculate the desired amount of income for a company over a given period. The desired profit formula can be expressed as: TargetNetIncome=Sales−VariableCosts−FixedCosts Where:...
Excel Your community for how-to discussions and sharing best practices on Microsoft Excel. If you’re looking for technical support, please visitMicrosoft Support Community. Forum Discussion
Is the investment justified; does this yield enough profit for our target group (in the case of a company for instance the owners, shareholders; in the case of a government institution for instance the citizens, the government itself)?Return On Investment formula and calculationThe...
Profit first formula explained According to GAAP (the Generally Accepted Accounting Principles), the formula for calculating a business’s profit is as follows: Sales – Expenses = Profit However, according to adherents of “profit first” accounting, there’s another way. Within the framework of...
Example: contribution margin and target profitYou work as a management accountant at Swish, Inc., a company which manufactures three types of sports shoes: Tennis, Football and Baseball. Your CFO has asked you to find out the increase in total revenue if total units sold for each type ...