|
It
takes a significant amount of sales to offset write
offs
The
chart below clearly shows the amount of sales required to
offset
write offs, which is predicated on the
profit margin that companies operate on.
For
example: a loss of $10,000 at a profit margin of 6% requires
gross sales of $166,667 to recover the write
off.
This
chart illustrates the need for Sales to work with Credit to prevent
losses. Working with CTAS can stop the potential for these
types of losses.
Contact
CTAS Today: 1.800.770.2827 for assitance Click Here
Sales
Recovery Chart
|
|
Profit
Margin |
|
Loss |
2% |
4% |
6% |
8% |
10% |
|
$1,000 |
$50,000 |
$25,000 |
$16,667 |
$12,500 |
$10,000 |
|
$5,000 |
$250,000 |
$125,000 |
$83,333 |
$62,500 |
$50,000 |
|
$10,000 |
$500,000 |
$250,000 |
$166,667 |
$125,000 |
$100,000 |
|
$25,000
|
$1,250,000 |
$625,000 |
$416,667 |
$312,500 |
$250,000 |
|
$50,000
|
$2,500,000 |
$1,250,000 |
$833,333 |
$625,000 |
$500,000 |
|
$100,000
|
$5,000,000 |
$2,500,000 |
$1,666,667 |
$1,250,000 |
$1,000,000 | |
|
