How can break-even analysis be used to project the level of operation

How can break-even analysis be used to project the level of operation needed to achieve a targeted profit level?

What will be an ideal response?

ANSWER

The targeted level of profit can be factored into the break-even equation as a fixed cost, and then determine the level of output and sales at which the operating costs plus fixed costs plus desired profit would just equal sales revenue: Q = (TFC + Desired Profit)/(P – AVC), where Q = output, TFC = total fixed cost, P = sales price, and AVC = average variable cost.