Profitability: Sales Goal for Period Formula
Overview
This document details the Sales Goal for Period formula used in the Profitability module.
Sales Goal for Period Formula
NOP Goal = 150,000
Fixed Expenses = 219,480
GPM = 63%
Royalty = 5.5%
Days Open in Year = 307
Days Open in Period = 26
Sales Distribution for Period = 6%
Annual Sales Goal
= (NOP Goal + Fixed Expenses) / (GPM% – Royalty%)
= (150000 + 219480) / (63% – 5.5%)
= 642,574
Annual Avg Daily Sales Goal
= Annual Sales Goal / Days Open in Year
= 642,574 / 307
= 2,093
Period Avg Daily Weight
= (Sales Distrib. for Period * Days Open in Year) / Days Open in Period
= (6% * 307) / 26
= 0.708461538
Period Sales Goal
= Avg Daily Sales Goal * Days Open in Period * Period Avg Daily Weight
= 2,093 * 26 * 0.708461538
= 38,553
Note: The Period Avg Daily Weight calculation is more complicated when the period crosses month boundries. It is correct as shown when calculating the sales goal for an entire month.
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