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Business Plan Testing

Related answers:

Here you find a template where you can calculate how large a turn over you need in your business to make it viable.

How large a sale
At the same time you can see how many pieces of goods or working hours you need to sell to meet your income goal.

Type in:
Type in your demand for profit (salary) pr year:
Type in your fixed cost in the business pr. year:
Type in salary to employees pr. year:
Type in contribution ratio: % % - Help
Type in the average sales price pr. sold item

Your Operating Budget
This budget is calculated from the figures you have typed in the above boxes.

Operating budget for one year in your business:

Turn over: Amount
- Variable costs/use of goods: Amount
= Contribution margin: Amount
- Salary to employees: Amount
- Other expenses: Amount
= Profit (your salary): Amount

Necessary sales to meet the budget
(Method of calculation: Turn over / price per unit = sold units)
Sale per year:  units
Sale per month:  units (11 mdr.)
Sale per week:  units (47 weeks)
Sale per days:  units (300 days)
Wish or reality
Notice that you have only found out that with the TYPED IN FIGURES you realise a sale of XX $.
You have not found out that you are ABLE to realise a sale of XX $ to meet your wish of a profit of YY $.

Valid in both production and services businesses
This way to calculate sales and turn over can be used in all kinds of businesses. In each case you will be able to calculate how many units/hours/treatments you need to sell in order to meet your wish/need for profit.
  • The Café calculates how many cups of coffees it needs to sell

  • The hairdresser calculates how many hair cuts she needs to do

  • The Ferry Service calculates how many cars and persons it needs to transport to the other side of the river.

  • The Dentist calculates how many dental treatments are needed

  • The consultant calculates how many hours he needs to sell

Template to calculate contribution ratio


in %

Type in the sales price pr. sold item:
 - Purchase of service/goods at supplier:
= Contribution margin & - ratio = CR
Go back
Contribution ratio
Contribution ratio shows in percent how big a part of your turn over you have left to pay your fixed expenses.

- Read more about Contribution Margin and Contribution Ratio
- Learn about Financial Management - control your business
- Read more about Operating Budget

- Click and share your experience on:
Business Plan Testing

arabworld, jordan 14-02-2012
20 years


5 tools to develop your own business plan:

Copyright © 2012 Dynamic Business Plan          20-10-2014

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Business Plan Testing
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Establishing Budget
Example of an Operating Budget
Operating Budget
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