(18C) Direct Sales Consultant booklet

12122018, 02:06 PM
Post: #1




(18C) Direct Sales Consultant booklet
extract(s) from the Working with your Business Consultant Professional Calculator series.
Revising Forecasts to Reflect Current Market Conditions … Most sales forecasts are based on certain assumptions about, and incomplete knowledge of, your market and competition. After the forecasts are made, internal and external changes make your original assumptions and your forecast incomplete. Examples of these changes in the market that were not reflected in the original forecast are a price drop (yours or your competitiors), advertising or promotional campaign, rebate offer, introduction of a new product by a competitor, or a change in distribution of your product. The formulas below helps you revise your forecast, based on the perceived impact of the market changes. formula NEWF=BASE+((A%+B%+C%)÷100)×BASE where BASE = original forecast %A = expected change in sales for change in market A %B = expected change in sales for change in market B %C = expected change in sales for change in market C Setting a Sales Price … One method fro setting a unit sales price is to deternine the unit cost of a product then multiply by a desired rate of return. The other values you must know are your total operating cost and the number of units you expect to sell. formula PRICE=(OPCOS÷UNITS+UNCOS)×(1+%RTN÷100) where PRICE = price per unit OPCOS = total operating costs UNITS = number of units sold UNCOS = cost per unit &RTN = desired percent rate of return BreakEven Analysis … Breakeven analysis is a technique for analyzing the relationships among fixed costs, variable costs and income. Until the breakeven point is reached (total costs equal total income), the producer operates at a loss. After the breakeven point, each unit produced and sold makes a profit. The variables in the formula below are fixed costs, variable costs per unit, sales price per unit of number of units sold and gross profit. formula PROFI=#SOL×(USPRUCST)FXCO where PROFI = gross profit #SOL = number of units sold USPR = selling price per unit UCST = costs per unit FXCO = fixed costs of doing business Leasing Calculations Situations may exist where one or more payments are made in ad vance (leasing is a good example). These agreements call for the extra payments to be made when the transaction is closed. A residual value (salvage value) can exist at the end of the normal term. Advance Payments … The following formula calculates the monthly payment amount (PMT) and the annual yield (I%YR) when one or more payments are made in advance. The formula can be modified to accommodate other than monthly payments by changing the constant 12 to the number of payments per year. In that case, PMT, N and #ADV would apply to the periodic payment. Remember to use the cash flow sign convention (money paid out is negative, money received is positive). formula ADVPMT:PMT=(–PV–FV×(SPPV(I%YR÷12:N)))÷ (USPV(I%YR÷12:N–#ADV)+#ADV) where PMT = monthly payment amount PV = loan amount FV = balloon payment amount I%YR = annual interest rate in percent N = total number of monthly payments #ADV = number of monthly payments made in advance SlideRule 

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