FAQ - Business Profit & Expense Calculator

1. How do I add a product?

Enter the product name, estimated quantity sold per month, cost per unit, and selling price. Click the "Add Product" button to add it to the list.

2. How do I update the selling price?

In the "Products Summary" section, change the selling price in the input box next to the product and click the "Update" button.

3. How do expenses and labor costs work?

Expenses include overhead costs like rent, utilities, and supplies. Labor costs include employee wages based on hourly rates and hours worked.

4. What does the dashboard show?

The dashboard provides insights into cost breakdowns, net revenue at different sales levels, and profit margins to help you make better financial decisions.

5. How is the net profit margin calculated?

The net profit margin is calculated as:

Net Profit Margin (%) = (Net Profit / Total Revenue) × 100

Where:

• Net Profit = Total Revenue - Total Expenses
• Total Revenue = Sum of all product sales
• Total Expenses = Sum of product costs, overhead, and labor expenses

This helps assess how much of your revenue remains as profit after covering all costs.

6. What is the sales scenario table?

The sales scenario table helps you visualize your business's revenue and profit under different sales conditions. It provides an estimate of how net revenue changes when sales volumes increase or decrease.

Key elements in the table:

• Sales Quantity: Different levels of monthly product sales.
• Product Earnings: Revenue generated per product at each sales level.
• Total Net Revenue: The overall business revenue at different sales volumes.

This tool helps in decision-making by allowing you to project potential earnings based on varying market conditions.