yo yo yo what's going on everybody if you don't know if you're new here I am
CPA strength I am the strongest licensed CPA in the state of Florida what do you
do buddy i educate motivate and inspire by
teaching accounting on a daily basis the building blocks like the basics because
it all goes on that but I am a CPA so I am one of the half million of them some
say I might know what I'm talking about but anyways well let's get I want to get
into this one this one's gonna be really fun they're all really fun if you happen
to be new here I always say never we do you know if you happen to be sticking
around for a while what up what up what up thanks thanks for coming back don't
we have a lot of fun here I know we're trying to stay positive we're trying to
you know I'm trying to grow my channel I'm trying to give good content I'm sure
the majority of people here are trying to better themselves in some degree
learn more about their business they're trying to pass a class whether they want
to be an accountant or not they want to take a business class and the list goes
on and on an old job application they might have an accounting test a job
whatever the case may be we're here to better ourselves and so yeah I mean
sometimes you know I got a certain schedule that I'm grinding on you know
like like a daily videos so sometimes I have to just really push myself to make
these videos sometimes I don't really feel like it like like I'm sure you
don't really feel like studying right now maybe you do but I'm sure there's
maybe I'm catching somebody who doesn't want to start you right now but they're
just like oh another pushing through and I'm kind of fun I'm kind of fun so you
like obviously would see me strength about let's get into this man I'm sorry
anyways that's for the returning people if you're new I have the best place in
the world over here at the best accounting playlist in the world
Megara dreams come true but I've already talked enough so let's get into this one
but this is also likely and six series I think your boys kind of
getting big dough let's get Jackson cell five years we'll
deal with five years of straights squirtle underdog bring it you who I
mean I can just lie about how rich I am right I mean I got to look juicy pretty
Liz this one is number 72 target profit all
right basically it's a definitely a play on breakeven it's definitely after fixed
and variable costs and contribution margin and if you notice we poops sorry
if you know I mean I just noticed I'm getting I get better at learning the
accounting as I'm teaching you know the first the very first video idea turbos
up fixed and variable cost and then the next one was out contribution margin and
then everything breakeven break-even point the examples on that target profit
and how did how to figure that its contribution margin there's other
formulas like I think margin of safety and this and that and all kinds of
formulas that go with the contribution margin so the contribution margin is
very important so I don't really want to I've already gone a lot of time so we
just want to get into this one this problem here right this is the target
profits is my classic series right target profit number 72 72 can you
believe it but the thing is here we want we want to target profit we want it
we've already done breakeven we already know we already know the formula for
breakeven and we're going to do that real fast so but we don't want to break
even more to make some money we want to make $50,000 as here in profits all
right we want to make $50,000 profit so how many units are we going to have to
sell for that well how much how much did we make per unit first how much how much
do we make per unit all our contribution margin is 80
so that's how much we make per unit so then we make a tea we make a tea a pop
right we make a tea a pop and how many how many of how many $80 do we have to
make to cover our other expenses which are fixed cost which is like our rent
and stuff how much how many of these $80 years do we have to sell the 200 to
cover our two hundred and forty thousand dollar fixed costs and that's that's the
break-even right there so I'm just kind of going going over breakeven real fast
but I just did this is 72 so 70 and 71 was breakeven and breakeven example so I
don't want to get into that again I'm sorry so if you don't know what the
breakeven is go back to the other go back to the other one please with this
with the fixed cost being 240,000 the units on price being 146 140 dollars the
variable cost being $60 per unit that's how this is the break-even formula here
are fixed over contribution margin that and then fix the contribution margin of
sales but it's variable and so that is $240,000 fixed over the contribution
margin which is 140 minus 60 which is 80 which happens to be 3,000 units you have
to sell 3,000 units because you make 80 80 80 dollars a pop so if you sold 3,000
3,000 of these widgets that $80 apiece 80 80 80 80 80 I make an ad I make an 80
or make an 80 you have to sell 3,000 to cover this 240 thousand dollars and
that's breakeven so that's nice to know but I'm sure you're not spending all
your time just to break even because let's say you know you've got bills
right the bills don't necessarily care that you're starting a new business and
you're just breaking even right now we don't we don't give AF about that so
you're like okay sir like okay we're going to sell 3000 units to break even
now how many would we have to sell to how many would we have to sell to make
$50,000 I think that's a good question and I want you to kind of analyze
analyze this sorry I did I didn't realize I wrote this this expression
here because I told you on the other breakeven you would always want to check
this if I said three because a break even is revenues equals costs if you had
3,000 units you want to plug it in here 3,000 units times 140 dollars a year
that's four hundred and twenty thousand dollars of revenue equals sixty times
three thousand is the variable cost that that's what 180,000 plus 240,000 so I'm
sorry but it this specifies three thousand units specifies the revenues
equal costs I want that to be shown what do you think you would do to make this
to make fifty thousand dollars there's a whole formula and stuff but
let's just think and it's fun to see because it's thinking about how many
units it took three thousand three thousand widgets just to break even now
like how many is it going to make them to do fifty thousand dollars I think
it's kind of interesting because you've already satisfied all your fixed costs
with this breakeven you've already paid all your rent and all your other costs
so now every so now your every sale before every sell before it was $80 and
that was just going to your fix like your rent or those two hundred and forty
thousand dollars of fixed costs but those are paid for so now that we've
broken even every every sale is proper is eighty eighty dollars profit so I
would just do 50 thousand / 80 which happens to be 625 see see
that's that's kind of that's kind of amazing that I see it's kind of amazing
that you not amazing but it's just interesting to me and you know I want
you to kind of think about it like that and then if it makes sense to unlike not
such a fast level but I really think people just go so fast and like what's
the answer what's the answer with the answer and then it's like you'll never
learn it so I just think I like to just go do not worry about anybody else and
you know think about it well that's consider you have time so
not just to go super super fast hold on one second Lee make sure yes in total
you have to you have to sell thirty six hundred and twenty-five thirty six
twenty five units to to profit fifty thousand dollars but break even three
thousand and then you just kind of hold 625 more to make that money or another
another you know another method you could do if you just want to get the
target profit real fast would be add it add the target profit right here fifty
thousand and that would be what two hundred and ninety thousand two hundred
and ninety thousand over 80 see is at two hundred two hundred and ninety
thousand divided by a 36:25 well you know what I hope everyone understands
the target profit I'm getting a little bit I'm getting a little bit sweaty look
at what what women say about the target profit
I say it's pretty easy I think it's once once you know the contribution margin
once you get the break the breakeven method
so everything on the positivity level today
no accept accept accept out that's it I was feeling like more than more than
usual today like I'm kind of like what are you doing with yourself is you're
wasting your time like like you're never going to make it big on YouTube like why
do you try and Baba and I don't know why has negative feelings but I discover
like know what I really want and just push through things so I just want to
say you know some Thai you know some people look for me look to
me as for motivation or inspiration as well as the education and a couple
videos before I said you know what I'm going to accept that role if I do
inspire you on the Amin I accepted it that was like a month ago and so I think
about that and I just want to say you know sometimes I have my bad days of
course sometimes I don't want to do it I feel behind all the time I feel like my
videos aren't good all these things but I made a goal to myself and I'm going to
be professional about it and the goal to myself was I'm doing today I'm doing a
video a day til the end of the year so that's like for like I don't know five
or six months of video a day anyways I thought maybe I would try to talk I
talked a little bit at the end so I've already given the lesson and
then you know you can stick around for me to blah blah blah or you could leave
I think that's better but sometimes premisses all like freestyle pretty much
the whole videos is freestyle so before I keep you any longer I hope
to see you in the next one I hope to see you in 73 I do have something planned
especially all for the next little bits so I hope to see in that one anyways
have stay positive be nice to people that's what do you think may be positive
yes but that's hard but you know what you know what I tell myself to be nice
like what I really like so a lot of times with my glue you know I'm I'm just
like you know just being nice dogs like just be nice like like I see some I just
smile and say hi like hi just like so so I want you to be nice be positive and be
nice all right have a great day you have a great night let's get it peace to
drift it's a back office quick with you to do shit got great put me this is what
a rocket moon stick nobody wants topping the throat so time
and like a debit card with a platinum and gold