How much must sales increase to cover an increase in the marketing budget of $X? |
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Previous period total sales: |
% Sales |
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Previous period Direct Job Costs (Cost of Goods Sold): |
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Previous period Fixed Costs (Operating and Overhead): |
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Previous period Break-even Sales: |
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Amount to be added to Advertising budget ($X): |
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Average contract price of new project: |
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Average contribution margin for each project: |
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Expected Gross Profit per Project based on current contribution margin: |
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Adjusted annual break-even: |
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Change in annual sales necessary to afford additional marketing expense and still break-even: |
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Will an increase in marketing effort provide additional revenue to at least cover the expense of the advertising? If the "Change in Annual Sales Necessary…" is a reasonable expected increase in sales because of the marketing campaign, you should make the bet. |
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Number of new projects necessary to cover additional marketing expense: |
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Effect on profit if: |
Adjusted Profit |
ROI |
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no new projects are sold ($): |
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1 new project is sold ($): |
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2 new projects are sold ($): |
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3 new projects are sold ($): |
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The results above assume that all current financial ratios (%COGS, $Fixed Costs) remain constant. |