Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 68

Target net income is the profit goal you set. (I use net income and profit to mean the same thing.)

You compute target net income by plugging the figure into the breakeven formula — with one change. The profit changes from $0 to the target net income amount. Here’s the new formula:

Target net income = sales – variable costs – fixed costs

If you’re going to take that trip to the trade show, how much profit would make your trip worthwhile? How much profit could you produce if you decided not to go? Maybe that’s how you should answer the question. Assume your profit goal/target net income here is $2,000.

Using the original information for sales, variable costs, and fixed costs, you can compute the sales you need to reach target net income:

 Target net income = sales – variable costs – fixed costs$2,000 = $40 × (units) – $20 × (units) – $1,000$3,000 = $20 × units)

 150 = $3,000 ÷ $20

You’ll meet target net income by selling 150 units.

You need to sell 100 more units (150 units – 50 units) to increase your profit from breakeven to $2,000. You can think about your target net income in units or dollars.

If you attend the trade show for three days, you need to average 50 sales per day to sell 150 units. If your booth is open for ten hours a day, you need to sell an average of five units per hour. Determine whether that’s reasonable. Is there enough interest in your product to reach that level of sales? That’s the real purpose of thinking through target net income.