|
|
|
| |
Original |
|
Result |
Difference |
Customers |
500 |
|
|
|
| # Items |
10 |
|
|
|
| Quantity |
5,000 |
1.05 |
5,250 |
|
| |
|
|
|
|
| Price |
$20 |
1.05 |
$21 |
|
| Sales |
$100,000 |
|
$110,250 |
|
| |
|
|
|
|
| Item Cost |
$14.95 |
.95 |
$14.20 |
|
| Variable Cost |
$74.750 |
|
$74,563 |
|
| Gross Profit |
$25,250 |
|
$35,687 |
$10,347 |
Gross Profit Margin |
25.25% |
|
32.37% |
|
| |
|
|
|
|
| Fixed Costs |
$15,250 |
.95 |
$14,488 |
|
| Net Profit |
$10,000 |
|
$21,199 |
$11,199.38 |
| Net Profit Margin |
10% |
|
19.23% |
9.23% |
Net
Profit increased by $11,199.38, so you
exceeded your goal of $10,000/mo. Net profit margin increased
by 9.23%, even though you changed each
of the four elements by only 5%.
You
may understand the terms and example above and be ready
to take steps to enhance your bottom line. The above example
may not be clear. Either way Chimorel and its affiliates
can help.
|
|
©
The Chimorel Group 2005
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|
