Next, use these numbers to calculate the days cash on hand. In general, it's recommended to have at least three to six months of cash on hand, depending on your industry.

To calculate the days of inventory on hand, divide the average inventory for a defined period by the corresponding cost of goods sold for the same period; multiply the result by 365.

Of course, you can simply do things by hand to get a sense of marginal revenue from a change in quantity. For instance, using the demand function above, the total revenue for the production of 50 ...