How to calculate Target profit units
The Target profit units formula, with plain worked examples you can check yourself.
Target profit units = (F + T) ÷ (P − V)
Worked examples
F = 4000 · T = 1000 · P = 30 · V = 20Target profit units = 500
F = 5000 · T = 1000 · P = 20 · V = 15Target profit units = 1,200
F = 11000 · T = 1000 · P = 40 · V = 20Target profit units = 600
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Costs & Break-even.
Related terms
Practice Target profit units with real numbers
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