Manipulating The Profit Formula

To find out the different ways you can reach the double your profits goal, you have to keep re-arranging the formula.

I’ve done it for you below:

Number of Customers = (Target Profit plus Fixed Costs)/(Average contribution per transaction * number of transactions)

Average Contribution = (Profit plus Fixed Costs)/(Customers * Transactions)

Number of Transactions = (Profit + Fixed Costs)/(Customers * Average Contribution)

Fixed Costs = (Customers * Average Contribution * Transactions) – Profit

Return to P1M4 Four Ways To Profit

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