By Mildred J at September 12 2019 05:56:42
Summary Section: This section is where you will be able to attach or explain any detail not applicable to the previous sections. This section should be used to provide the financial statements of the Principle's involved in the business and any other data you think an investor would be interested in seeing.
Why do you need to know these percentages? As your sales increases or decreases, your material cost, labor cost, and variable expenses will track accordingly. They will track very close to the same % as your current business. As an example, let's say your current sales is averaging 贄ꯠ per month and your material cost is averaging ฤꯠ per month. That's 20% of your sales (ฤꯠ ÷ 贄ꯠ = 20%). So, what would your material cost be if your sales were averaging 赨ꯠ per month? It would still be 20% but it would be 20% of 赨ꯠ or ุꯠ. So with these percentages, you can project your material, labor and variable expenses. See how it works?