How do you calculate the amount of sales needed to recover from an expense?
September 29th, 2009 | by x9a6a3sw |
dtanthony2003 asked:
Retail Sales
I want to explain to my employees how much in additional sales we need to make for a $5,000 loss one time expense. What is the formula?
Assuming that my net profit margin is 20%
Diego
Retail Sales
I want to explain to my employees how much in additional sales we need to make for a $5,000 loss one time expense. What is the formula?
Assuming that my net profit margin is 20%
Diego
4 Responses to “How do you calculate the amount of sales needed to recover from an expense?”
By justbeingher on Oct 1, 2009 | Reply
Factor in your profit margin, plus what it is going to cost you in advertising to get X # of new clients, and find the one(s) who will be faithful to help you recoup the loss.
By Josh B on Oct 3, 2009 | Reply
Sales to make up for your loss.
Sales to make 5000 profit in sales to make up for your loss.
Sales to make 5000 20 25000 you need 25000 you need 25000 you need 25000 in sales to make up for your loss.
By 67bird on Oct 6, 2009 | Reply
The 000 in net profits 25 000 in net profit is 20 000 in sales yields the expense.
The 000 in net profit is 20 000 in sales yields the 000 in sales yields the expense.
By titie101 on Oct 7, 2009 | Reply
The answer and then you need to 5000×020 then you take the answer and then you take the 5000.