ENTER VALUES FOR THE FOLLOWING: DEMAND PRICE SENSITIVITY UPPER LIMIT TOTAL FIXED COST UNIT VARIABLE COST QUANTITY SOLD TARGET PROFIT SCENARIO $10.00 $6,000 $3.50 10,000 $5,000 TARGET PROFIT = TOTAL REVENUE - TOTAL COST TARGET PROFIT = TR - TC TARGET PROFIT = (P Q) - [FC + (UVC * Q)] T PROFIT PRICE (P) = (TARGET PROFIT+ [FC + (UVC * Q)]) - Q TARGET PROFIT PRICE: ENTER VALUES FOR THE FOLLOWING: QUANTITY SOLD (Q) COST OF GOODS SOLD (COGS) MARKUP OR GROSS MARGIN (GM) SELLING PRICE (P) SCENARIO 10,000 $2.50 $3.50 $10.00 ON SELLING PRICE (%) = (MARKUP - SELLING PRICE) X 100 MARKUP ON SELLING PRICE (%): % Since price is expressed in per unit terms, one must divide the markup or gross margin (GM) dollars and cost of goods sold (COGS) by the quantity sold (Q) to convert both elements to a per unit basis