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To calculate the sales volume needed to achieve a specified gross profit:
1. Key in the desired gross profit and press .
2. Key in the fixed cost and press .
3. Key in sales price per unit and press .
4. Key in the variable cost per unit and press .
5. Press to calculate the sales volume.
To calculate the required sales price to achieve a given gross profit at a
specified sales volume:
1. Key in the fixed costs and press .
2. Key in the gross desired and press .
3. Key in the specified sales volume in units and press .
4. Key in the variable cost per unit and press to calculate the required
sales price per unit.
Example 1: The E.Z. Sells company markets textbooks on salesmanship.
The fixed cost involved in setting up to print the books are $12,000. The
variable cost per copy, including printing and marketing the books are
$6.75 per copy. The sales price per copy is $13.00. How many copies
must be sold to break even?
Find the gross profit if 2500 units are sold.
If a gross profit of $4,500 is desired at a sales volume of 2500 units, what
should the sales price be?
Keystrokes Display
12000
12,000.00 Fixed cost.
13
13.00 Sales price.
6.75
1,920.00 Break-even volume.
13
13.00 Sales price.
6.75
6.25 Profit per unit.
2500
15,625.00
12000
3,625.00 Gross profit.