reed calculations

# reed calculations - Sheet1 Normal Sale price(USD Dollar...

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Sheet1 Page 1 Normal Sale price(USD) Dollar Special Sale(USD) Weekly 4% Dollar sales For 28 weeks Revenues 2.7 1.5 0.51 14.28 cost of good sold 2.09 2.09 0.7 19.6 Gross profit 0.61 -0.59 -0.19 -5.32 -37.254902 Gross profit margin 22.70% -39.33% -39.30% -39.30% Total expenses 0.56 0.56 0.19 5.32 Net profit 0.05 -1.15 -0.38 -10.64 Net profit Margin 1.90% -76.66% -76.70% -76.70% Contribution Margin I Calculated gross profit by this formula--> gross profit margin=(gross profit/sales) I Calculated expense by this formula--> expense as% of sales=(total expense/sales) cost of goods remain same because only price changes. No effect on CGS Weekly 4% sale is calculated as follow: year sale is 660, we need to find weekly sales for the year, so there are 52 weeks in year.dividing 660 by 52 we get 12.69Million.Now to find that 4% of weekly sale take 4% of 12.69.we get 0.5 CGS is calculated( ((660/1.5)*2.09)/52)*4%.We first need to find the cost of good of one product.The price of dollar special product is 1.5 so we divide total sales by 1.5 to get portion of dollar special cgs.then multiple it by 2.09 which is cgs of one product so we now get cgs of all products in 660 sale.inorder to find weekly divide it by 52 and multiple by 4%

Unformatted text preview: Calculates same as CGS Combines effect Dol ar special sale in USDNormal sales in USD Total according to case Revenues 14.28 645.72 660 Gross profit-5.32 146.58 140.96 Expenses 5.32 133.01 138.34 Net profit-10.64 13.56 2.62 Net profit Margin-76.70% 2.10% 0.40% Contribution Margin%-39.21% 22.70% 21.36% gross profit margin=gross profit/net sales---&gt;0.227*645.72=gross profit same calculation like gross profit Profit = (Sales x CM) - Fixed Costs 3% increase in sales by dol ar special Total sales =679.5(3% increase in sales) Dol ar special in USD Revenues 0.523 CGS 0.73 Gross profit-0.23 Expenses 0.2 Net profit-0.43 Contribution Margin-43.97 The figure is calculates with the same procedure in E6 Same calculation as E7 n E13...
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• Spring '12
• tim
• Revenue, Sales, Generally Accepted Accounting Principles, 0.40%, 2.10%, 21.36%

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