ENTER VALUES FOR THE FOLLOWING: DEMAND PRICE SENSITIVITY UPPER LIMIT TARGET RETURN ON SALES (%) TOTAL FIXED COST UNIT VARIABLE COST QUANTITY SOLD SCENARIO $10.00 20% $6,000 $3.50 10,000 TARGET RETURN ON SALES (%) = (PROFIT + TOTAL REVENUE) TRoS (VALUE) = (TR - TC) TR] TROS (VALUE) = (P * Q) - [FC + (UVC * Q)] + (P * Q) B . PRICE (P) = [FC + (UVC *Q)] ) + [Q* (1 - TROS )] PRICE: PROFIT = TOTAL REVENUE - TOTAL COST PROFIT = TR - TC 5 7 8 9 0 -1 22 23 24 25 26 27 28 PROFIT = (P* Q) - [FC + (UVC * Q)] TOTAL REVENUE (TR): PROFIT: 29 30 ECK: TARGET RETURN ON SALES (%) = (PROFIT + TOTAL REVENUE) 31 32