By Rao at September 09 2019 20:14:49
So here is how you would do it: Projected sales = fixed exp (足ꯠ) divided by 1_ƖǑ% + 27ǔ% + 12ǔ% + 25% (your new profit margin) = 造같 (new sales). You can do this for as many years out as you want. Obviously this is based on your first year's fixed expenses remaining constant and no consideration of depreciation, inflation, or taxes.
But your fixed expenses don't do this. They remain the same no matter what sales does. That's why it's call fixed. These are expenses like rent, taxes, utilities, phone, salaries, insurance, etc. A lot of business owners never consider this. They just lump all their expenses together. But you could never make an accurate plan if you combine all your expenses together. If you project your sales higher and want to know what your expenses will be, you have to separate your fixed and variable.