One of the helpful uses of CVP analysis is the determination of the sales required to generate a target profit (income).
In other words, we can determine the number of units to sell to come up with a desired profit.
This is done by tweaking the breakeven formula and incorporating the desired profit.
Target Sales Volume Formula
The target sales volume required to achieve a specific level of income can be computed using the following formula:
Target sales =  Total fixed costs + Target income 
CM per unit 
If the target income is on an aftertax basis, the formula to compute for the target sales would be:
Total fixed costs + [Target income / (1Tax rate)] 
CM per unit 
If the target income is expressed in terms of percentage of sales (example, 20% of sales), the formula would be:
Total fixed costs 
CM per unit  (Percentage x Selling price) 
Example
To illustrate the concepts above, consider the following data.
Per Unit 
Total 

Sales (3,000 units)  $15 
$45,000 

Less: Variable Costs  5 
15,000 

Contribution Margin  $10 
$30,000 

Less: Fixed Costs  20,000 

Operating Income  $10,000 
Compute for the sales volume required to attain the following:
1. A target income of $60,000 before taxes.
2. A target income of $60,000 after taxes (40% tax rate).
3. A target income equal to 40% of sales.
1. A target income of $60,000 before taxes
Target sales  =  Total fixed costs + Target income 
CM per unit 

=  $20,000 + $60,000 

10 per unit 

Target sales  =  8,000 units 
Analysis: Selling 8,000 units will result in an operating income of $60,000. To prove, let us compute for the net income at 8,000 units.
Per Unit 
Total 

Sales (8,000 units)  $15 
$120,000 

Less: Variable Costs  5 
40,000 

Contribution Margin  $10 
$ 80,000 

Less: Fixed Costs  20,000 

Operating Income  $ 60,000 
2. A target income of $60,000 after 40% tax
Total fixed costs + [Target income /(1Tax rate)] 

CM per unit 

20,000 + [60,000/(140%)] 
= 
20,000 + 100,000 
10 
10 

Target sales = 12,000 units 
To prove, let us compute for the income after tax at 12,000 units.
Per Unit 
Total 

Sales (12,000 units)  $15 
$180,000 

Less: Variable Costs  5 
60,000 

Contribution Margin  $10 
$120,000 

Less: Fixed Costs  20,000 

Operating Income  $100,000 

Less: Income Tax (40%)  40,000 

Net Income  $ 60,000 
3. A target income of 40% of sales
Total fixed costs 

CM per unit  (Percentage x Selling price) 

20,000 
= 
20,000 
10  (40% x 15) 
4 

Target sales = 5,000 units 
To prove, let us compute for the operating income at 5,000 units. Notice that the resulting income of $30,000 is 40% of the $75,000 sales.
Per Unit 
Total 

Sales (5,000 units)  $15 
$75,000 

Less: Variable Costs  5 
25,000 

Contribution Margin  $10 
$50,000 

Less: Fixed Costs  20,000 

Operating Income  $30,000 
Conclusion
Aside from the determination of the breakeven point, the CVP analysis can determine the level of sales required to generate a specific level of income. The target income could be expressed on a beforetax basis or aftertax basis. It can also be expressed as a percentage of sales. In all those cases, nonetheless, the CVP analysis can compute for the required sales volume.