Practice Flashcards
Flip to reveal answersTarget profit output = (FC + target profit) ÷ ___
Track your progress — Sign up free to save your progress and get smart review reminders based on spaced repetition.
All 7 Flashcards — Target profit and target price (HL only)
Sign up free to track progress and get spaced-repetition review schedules.
Question
Target profit output = (FC + target profit) ÷ ___
Answer
Contribution per unit.
💡 Hint
CPU
Question
Target profit output formula?
Answer
(Fixed costs + Target profit) ÷ Contribution per unit.
💡 Hint
(FC + TP) ÷ CPU
Question
Target price formula?
Answer
(FC ÷ forecasted output) + VC per unit + (Target profit ÷ forecasted output).
💡 Hint
FC/output + VC + TP/output
Question
Show all ___ in target profit/price exam calculations
Answer
Working — method marks available even if final answer is wrong.
💡 Hint
Working
Question
FC=$50k, VC=$10, price=$30, target profit=$20k. Target output?
Answer
CPU = $20. Target output = ($50k + $20k) ÷ $20 = 3,500 units.
💡 Hint
3,500 units
Question
FC=$50k, output=5000, VC=$10, target profit=$20k. Target price?
Answer
($50k ÷ 5000) + $10 + ($20k ÷ 5000) = $10 + $10 + $4 = $24/unit.
💡 Hint
$24/unit
Question
Target profit/price extends break-even by asking ___
Answer
How many units OR what price needed to achieve a SPECIFIC profit goal — beyond just covering costs.
💡 Hint
Specific profit goal
Read the notes
Full study notes for Target profit and target price (HL only)
Topic 5.5 hub
Break-even analysis
More from Topic 5.5
All flashcards in this topic
BM exam skills
Paper structures & tips
Track your progress with spaced repetition
Sign up free — Aimnova tells you exactly which cards to review and when, so you remember everything before your IB exam.
Start Free