how can the break-even formula be altered to calculate the number of units that must be...

how can the break-even formula be altered to calculate the number of units that must be sold to acheive a desired level of target income?

Expert Solution

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How can the break-even formula be altered to calculate the number of units that must be sold to achieve a desired level of target income?

We know break even units is fixed costs divided by contribution per unit.

So now if we want to know the units to be sold to achieve desired level of target income then just add fixed cost with desired level of target income and divide it by contribution per unit. This will give the number of units to be sold to achieve a desired level of target income.

So in this way we can alter the break-even formula to calculate the number of units that must be sold to achieve a desired level of target income.

ekkarill92 answered 3 years ago

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