Projected Profit a Company Can Determine Its Projected Profit by Using the Using

Essay

Projected Profit
A company can determine its projected profit by using the following equation:
profit = total income - (total fixed costs + total variable costs)
Based on market research, CSO Corporation feels its product will sell for $200 / unit. At that price, CSO can sell 150 units per month. Currently, CSO incurs the following costs on a per unit basis: direct material, $10; direct labour, $60; variable overhead, $20. Its total fixed costs per month are $3 300.