financial_analyzer.units_for_target_profit

Module Contents

Functions

units_for_target_profit(fixed_costs, ...)

Calculate the number of units needed to be sold to achieve a desired profit.
financial_analyzer.units_for_target_profit.units_for_target_profit(fixed_costs, sales_price_per_unit, variable_cost_per_unit, desired_profit)[source]

Calculate the number of units needed to be sold to achieve a desired profit.

Parameters:

  • fixed_costs (float) – Total fixed costs for the business, given as a float.

  • sales_price_per_unit (float) – Selling price for each unit of the product/service, given as a float.

  • variable_cost_per_unit (float) – Variable cost incurred for each unit produced, given as a float.

  • desired_profit (float) – The target profit for the business, given as a float.

Returns:

The number of units that need to be sold to achieve the desired profit.

Return type:

float

Examples

Context: You want to achieve a profit of $2,000 this month. Your fixed costs are $3,000, each unit is sold for $5, and the variable cost is $2/unit.

>>> fixed_costs = 3000
>>> sales_price_per_unit = 5
>>> variable_cost_per_unit = 2
>>> desired_profit = 2000
>>> units_to_sell = units_for_target_profit(fixed_costs,
                                                      sales_price_per_unit,
                                                      variable_cost_per_unit,
                                                      desired_profit)
>>> print(units_to_sell)
1000

Output tells you how many units of the product must be sold to achieve desired profit