Cost Volume Profit Analysis (CVP): Target Profit

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This video illustrates how to calculate the number of units and sales dollars in order to reach a target net income or profit level.

Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.

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this guy is the goat for my managerial accounting class

lesko
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Oh my god man I spent hours reading thru my textbook when I should’ve just looked this up first. Thank you king

Joebyron
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These videos really help a lot. I'm going to write an exam tomorrow with confidence :)

TsholoPhoka
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You are such a great tutor! Glad to have these video tutorials around. I wish you will do Home Office, Branch and Agency Accounting topics too :D subscribed! Thank you sir!

ItsMickSay
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Man keep up the good work. This is extremely helpful!

chunkypandey
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We can also get the sales revenue by multiplying the price by the number of units. That’s easier 😅

Ayhams
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I don't agree to the answer you gave to my question - but there you are.

deborahnorton
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Target Profit amount is always in year?

tenzinchoegyal
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How do you implement tax in the formula?

gustavfog
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To calculate the target NI, why dont you just put 35.000 unit multiply with the sandwich price $5??? Its equal & easier I though

atikanurfitriani
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ok I am kinda confused on the last part how did you get 175k because when I did the math I got 98000

OfficialKhanflict
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How to calculate weighted-average contribution margin percentage?

ericnatividad
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MAY YOU PLEASE COME UP WITH COST APPORTIONMENT VIDEOS PLEASE??

abelwizkiz
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Net Income... but no mention of taxes??? I think you meant operating income

kevinmcnamara
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Dear Friends,
I want to confirm:
If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.

ntcuongct
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Why didn't you just calculate 35000 subs x $5 to get the $175000 net income? Why another formula?

deborahnorton
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This isn't a target net income calculation as you don't reference the tax rate at any point. This would be a Target Operating Income calculation.

jenniferstockton
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Honey I broke even. I wanted to make money! BITCH I AM TRYING!

stavk