Determination of Required Sales Volume in Monetary Units:

It may be determined by first calculating the needed sales and then multiplying the answer by the unit sales price. As a more direct approach, it may be calculated through substituting the contribution rate for the contribution margin per unit in the sales volume formula illustrated before. Formula for calculating is thus:

Sales volume (in rupee) = (Fixed costs × Operating income) /Contribution rate

The sales volume (in rupee) for the Quality ice-cream store at an operating income of

Rs. 25000 is calculated as:

Sales volume (in rupee) = (55, 000 + 25, 000) /0.255

                                      = Rs. 313,725 per month