Profitability: Sales Goal for Period Formula

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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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