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Topic: Profit Contribution Breakdown Excel
Q: Do we have any thing related to Drilling business profitability analysis or costing spreadsheet?

A: Nothing specific for that industry but we do have a generic Profit Contribution model at www.bizpeponline.com Breakeven Analysis at www.bizpeponline.com that may be of interest.

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Topic: Profit Contribution Breakdown Excel
Q: Can I enter current data into the programme as dollar values for fixed cost and percentages for variable costs.

A: Yes on the Input Overall Performance Data sheet select your Expense cell D16 input as Monetary or Percent (drop down list when clicked). This allows you to input your Expenses directly in Monetary (Dollars, Pounds etc) or Percentage terms. This is also available for Revenue cell C11 on the Segment sheets.

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Topic: Profit Contribution Breakdown Excel
Q: I may not always need 5 columns - problems entering zeros.

A: Profit Contribution Breakdown Excel is designed for 5 segments (Products and Customers). If you have less than five you can either divide your existing segments into 2 (or more) resulting in multiple segments with the same values (ie duplicates). Alternatively for the not required Product or Customer segment set the Segment Revenue and Transaction data to very low numbers and the relative indicators and potential and ability values to 0 except a single fixed cost relative indicator (usually Other) which is used to add a cost equal to the revenue of the segment (so the comparative values are valid). For example in the product segment for a Revenue of 1 we need a Fixed cost of 1 for 0 profit. This is done by setting the Fixed Cost Other to 1 in the Overall performance data sheet and allocating all of this to the empty product segment by setting the empty Product segment relative indicator to 100 and all other segment relative indicators to 0 for the Fixed cost Other. In the attached file I have set the Customer segment 4 and Product segment 4 in this manner for your reference.

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Topic: Profit Contribution Breakdown Excel
Q: I am not quite clear on the "Relative Indicator reference"

A: Relative Indicators are a means to allocate expense relative to other segments. The base or "average" relative indicator is 100. So if all segments used the same amount of an expense per transaction / or revenue generated then all segments would have a relative indicator of 100. But if for example a segment uses 10% more of the expense than "average" to secure the transaction or revenue its relative indicator is 110. If 10% less its relative indicator is 90. If it uses none of the expense its relative indicator is 0. All calculations are relative, it does not matter what the relative indicator totals are only the relationship between each indicator is used. This allows a better indication of profit ie some customer segments may require more Marketing or Administration effort (resource) than others Relative indicators allow this to be considered.

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Topic: Profit Contribution Breakdown Excel
Q: Can you use "Profit Contribution" for a more in depth analysis and then export summarised info to "Pricing Break Even" module for "what if analysis" - or can you enter the data that you would be entering in Profit Contribution in Pricing Break Even - I am only looking at the evaluation software and perhaps the paid product has more functionality that I cannot see??

A: You can enter the Revenue, Price, Variable and Fixed totals for the business or product or customer segment group (from the profit Contribution) into the Pricing and Breakeven analysis to apply sensitivity (there is no export data function between the two). The functionality of evaluation software (apart from the limited input to example data) is the same in both registered and evaluation software.

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