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I have been trying to work out what gross sales are needed in order to
generate a profit after tax of $1,000,000. i think i will need to use something like Goal Seek or Solver but i don't have a formula set up so i can't use them yet. Currently, this is what the financial data looks like: (assumptions in brackets) Gross Sales $2,105,500.00 Net Sales $2,085,500.00 (Gross sales - 3%) MM&G $417,100.00 (20% of Net Sales) Labour $325,000.00 Materials $600,000.00 Variable Overheads $277,500.00 (30% of Labour + Overheads) Fixed Overheads $70,000.00 Cost of Goods Sold $1,272,500.00 (Labour+Materials+Overheads) Gross Profit $813,000.00 (Net Sales - Cost of Goods Sold) Profit Before Tax $395,900.00 (Gross Profit - MM&G) Tax $138,565.00 (35% of Profit Before Tax) Profit $257,335.00 (This is the figure i hope to reach $1,000,000 on by changing the gross sales which has a flow-on effect with some of the other figures). |
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