Sales Calculation and Analysis
Sales revenue is calculated by multiplying the number of units sold by the sales price per unit.
- Total sales revenue example:
- 3,000,000 units sold at $30
- 4,000,000 units sold at $50
- 3,000,000 units sold at $80
- Resulting in total sales revenue of $530 million.
Net sales are calculated by deducting discounts from total sales.
- Calculation example:
- Applying a 20% discount
- Multiplying the remaining total by 80% to get net sales.
Net purchases are the total purchases after deductions.
Net income is total revenue minus expenses and taxes.
Net revenue is the total sales revenue after subtracting discounts and returns.
- Net revenue example:
- 100 items sold at $100 each, totaling $10,000
- $1,000 in returns
- Net revenue would be $9,000.
Financial Calculations and Margins
Markup percentage calculation formula:
- Subtract unit cost from sales price
- Divide the difference by unit cost
- Multiply by 100.
- Example: A 50% retail margin implies the sales price is double the cost of goods sold.
Gross sales represent total invoices before adjustments like discounts and returns.
Total expenses are derived by subtracting net income from total revenue.
Value Sales and Analysis
Value selling focuses on solving customer problems with products or services.
- Net sales, deductions, and calculation example.
- Using separate line items for values aids in analysis.
Sales Analysis and Funnel
Understanding customer purchasing trends is key to identifying their preferences.
The sales funnel helps in determining advertising spend, lead conversion rates, and expected returns.
- Conversion rates and customer buying behaviors can vary based on traffic sources.