valuationbreak evenprofitcontributionforecastshiftqueuingbusiness analysis
accountbasbudgetBAS-I.Cshare valueshort salesinvestment
site mapform1

Browse All Question and Answer Items

Items selected where Item is 10290

Questions & Answers

Q: I am a recent purchaser of your software and would like to know the easiest way to calculate a pricing change using your software. I want to compare the beginning of year baseline, to a current situation whereby our raw material costs have risen year to date. What I am interested in doing is to raise selling price to accommodate the raw material change and keep the margin and profits the same and wanted to know the best way to do so. I am contemplating the following: 1) Baseline the FY by using the projected selling price, revenue, fixed, and variable costs. What will be the result is the planned sales profit etc. Next would be to enter the information for the current scenario. 1) Enter the sales volume 2) Enter the change in raw costs in the variable costs section as fixed costs have remained constant. Am I on the right path?

A: Yes, set up your baseline to determine your current parameters, save this as your current scenario. Then set up a new scenario for the following year using your increased variable cost. You can then adjust and refine other parameters ie (Business Revenue) as required to determine the impact and identify the mix that would maintain profit at the required level.

Question and Answer Item 10290 - Browse All Question and Answer Items