Revenue Needed for Your Profit Goal
To earn $10,000 a month in profit with a 25% net margin and $8,000 of fixed costs, you need about $72,000 in monthly revenue. Of that, $8,000 covers fixed costs, $10,000 is your profit, and the remaining $54,000 is variable cost. Raise the margin or cut fixed costs and the required revenue drops fast.
Advertisement