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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.
Your Operating Budget
This budget is calculated from the figures you have typed in
the above boxes.
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.
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The Café calculates how many cups
of coffees it needs to sell
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The hairdresser calculates how
many hair cuts she needs to do
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The Ferry Service calculates how
many cars and persons it needs to transport to the other side of the river.
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The Dentist calculates how many
dental treatments are needed
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The consultant calculates how
many hours he needs to sell
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
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| arabworld, jordan |
14-02-2012 |
20 years
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Copyright © 2012 Dynamic Business Plan 20-06-2013
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