# Making Profits

60 %
40 %
Information about Making Profits

Published on November 27, 2008

Author: gallipot

Source: slideshare.net

## Description

Maximise profits; increase sales & control costs

Making Profits in Business

What’s my line? Complete the following sentence: In commercial businesses The Chief Executive’s 2 most important priorities are: 1 …………………………………………... 2 …………………………………………...

Complete the following sentence:

In commercial businesses The Chief Executive’s 2 most important priorities are:

1 …………………………………………...

2 …………………………………………...

What’s my line? Answers In commercial businesses The Chief Executive’s 2 most important priorities are: 1 To keep the business solvent / from going bankrupt 2 To make a profit

In commercial businesses The Chief Executive’s 2 most important priorities are:

1 To keep the business solvent / from going bankrupt

2 To make a profit

Understanding profits I run a business which sells Exercise books I sell the books at 50p each. Last month I sold 40,000 books (£20,000 sales). I made £2,000 profit I want to grow my business, so if I can increase sales to 50,000 books how much profit should I make?

I run a business which sells Exercise books

I sell the books at 50p each.

Last month I sold 40,000 books (£20,000 sales).

I made £2,000 profit

I want to grow my business, so if I can increase sales to 50,000 books how much profit should I make?

Understanding profits I have two sets of costs Fixed costs – like the rent for my warehouse and the lease on my van Variable costs – like the cost of buying the books, and the money I spend on diesel for the van; the more I buy / use the more I spend My revenue comes from my sales My profit = My sales – My costs

I have two sets of costs

Fixed costs – like the rent for my warehouse and the lease on my van

Variable costs – like the cost of buying the books, and the money I spend on diesel for the van; the more I buy / use the more I spend

My revenue comes from my sales

My profit = My sales – My costs

Understanding profits It would be easy to think that if you increase sales by 25% then profits go up by the same amount Actually something much more wonderful happens…. Take a look at the graph on the next page…..

It would be easy to think that if you increase sales by 25% then profits go up by the same amount

Actually something much more wonderful happens…. Take a look at the graph on the next page…..

Costs / Sales / Profits Relationship

Understanding Profits So if I increase sales by 25% 50p / book 40,000 sales = £2,000 profit 50p / book 50,000 sales = £4,875 profit If I increase the price by 50% and can achieve sales 75p / book 40,000 sales = £12,000 profit 75p / book 50,000 sales = £17,375 profit And if I also double the price and achieve sales! £1.00 / book 40,000 sales = £22,000 profit £1.00 / book 50,000 sales = £29,875 profit

So if I increase sales by 25%

50p / book 40,000 sales = £2,000 profit

50p / book 50,000 sales = £4,875 profit

If I increase the price by 50% and can achieve sales

75p / book 40,000 sales = £12,000 profit

75p / book 50,000 sales = £17,375 profit

And if I also double the price and achieve sales!

£1.00 / book 40,000 sales = £22,000 profit

£1.00 / book 50,000 sales = £29,875 profit

## Add a comment

 User name: Comment:

## Related presentations

#### Cheapest canvas prints shopcanvasprintcom

April 2, 2014

Canvas Prints at Affordable Prices make you smile.Visit http://www.shopcanvasprint...

#### Paseo en bici por la historia del comercio gijones

April 1, 2014

30 Días en Bici en Gijón organiza un recorrido por los comercios históricos de la ...

#### Meta anlysis of 5 spanish ropo studies minerva ove...

April 1, 2014

Con el fin de conocer mejor el rol que juega internet en el proceso de compra en E...

#### Informa Whitepaper - The Rise of Australia's LNG I...

April 1, 2014

With three established projects across the country and seven more in the pipeline,...

#### Decoding Retail StartUp : Comprehensive Roll-Out S...

April 1, 2014

Retailing is not a rocket science, neither it's walk-in-the-park. In this presenta...

#### What is research??

April 2, 2014

Explanatory definitions of research in depth...

## Related pages

### Making profits out of hope | The Economist

The migrant business Making profits out of hope How desperation and innovation combined to create a business Oct 22nd 2016 | From the print edition

### Making Profits

Discover how easy it is to start making money online today! CLICK HERE. WANT TO START MAKING MONEY ONLINE TODAY?

### Making Profits: A 6-month Action Plan for the Small ...

Malcolm Bird - Making Profits: A 6-month Action Plan for the Small Business (Piatkus Small Business jetzt kaufen. ISBN: 9780749911362, Fremdsprachige ...

### Making your business more profitable | Queensland Government

Tools and techniques to help you improve your profits. ... Making and managing money Making your business more profitable. Making your business more ...

### making of profits - Deutsch-Übersetzung - bab.la Englisch ...

Übersetzung für 'making of profits' im kostenlosen Deutsch-Wörterbuch. Weitere Deutsch-Übersetzungen für: making, of, profits

### Profit (economics) - Wikipedia

Profit or normal profit is a ... making the long run equilibrium ... a firm will attempt to maximize its profits. Given that profit is defined as the ...

### Making Profits Selling Rockets - Juliana Meyer: Amazon.de ...

Ihre Musikbibliothek MP3-Einkaufswagen. Sie haben die maximale Anzahl an zulässigen Titeln in Ihrem MP3-Einkaufswagen überschritten.

### Strategies For Making Profits - Kennas

©ESS Marketing Pty Ltd - ACN: 078 451 439 Paper 09.82 250505 Page 3 BUSINESS PLANNING STRATEGIES FOR MAKING PROFITS Paper 09.82 1. Aim For Excellence In ...