Increase your sales and marketing

Increase your sales and marketing

Post by adplacebd_ » Mon, 12 Oct 2009 02:31:50


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2. sales needed to cover costs that increase as sales do

Hello,
I'm trying to write a funcction that will calculate the amount of
incremental sales I would need to cover my costs if I were start paying a
sales commission.
Example:
If my original sales were 100,000
and I wanted to pay 3% commission, that would cost me:
75% of the sales (that is my cost of sale) PLUS the 3%. The problem is that
if I need to increase sales to cover the 3% commission, I have to pay the
cost of sales (75%) plus the commission on those sales and so on- and so-on.
It seems like a never ending loop. I can do a "solver" but I need a formula
to put into a spreadsheet to give to my sales team. It's more than breakeven
because of the incremental sales and costs associated with those additional
sales.

Any clues?!?! ANY input would be so appreciated!!

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