# The Coffee Pod Launch

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How to Calculate Marginal Sales Per Day

by Isobel Phillips, Demand Media

Marginal sales, or revenue, is usually defined as the revenue obtained from the sale of one additional unit. Cost accountants use this information to help them decide, for example, the optimum price a company can charge for its product before its total revenue falls. A sales representative might use marginal sales data to calculate the optimum number of days to spend in a particular area, in order to maximize her income.

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Step 1

Draw up a table showing the relationship between days spent in the area and sales generated. Marginal sales per day are equal to the change in sales volume divided by the change in the number of days of selling activity. For example, a representative makes \$4,000 of sales if she spends one day per month in an area, \$7,000 of sales for two days per month in the area and \$9,500 for three days per month.

Step 2

Calculate the difference in sales for each additional day in the area. In the example, two days per month provides an additional (\$7,000 minus \$4,000) \$3,000 of sales and three days per month generates (\$9,500 minus \$7,000) \$2,500 in extra sales.

Step 3

Divide the change in sales by the change in units. In this example units, or days, increase by one each time. The marginal sales achieved by spending one day in an area are \$4,000, the second day generates an extra \$3,000 of sales and the third day an additional \$2,500. In order to maximize his sales volume, the agent could compare marginal sales in several different areas and allocate his time where he makes the largest marginal sales for each additional day of activity.