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Met North Energy Corporation 4 Year Net Profit Projections The current budget figures for the four year period 1996 1999 show a steady decrease in profits eventually resulting in a loss during the fourth year. The graph shows the decrease in net profit while gross profit remains virtually static and expenses increase. After an initial loss during the first year the figures indicate a healthy profit at the end of the period. The figures in this graph from the spreadsheet clearly show the long term benefits gained by the additional $ 50, 000 when it is added to the 1996 advertising budget.
Despite a loss of $ 10, 000 in the first year the projected profit for the 4 year period is $ 160, 50 The results of the spreadsheet showing both budget options can be reduced to just one simple graph. This supported by market research would convince management as to which option to choose. Met North Energy Corporation Net Profit Projections Year 1996199719981999 Sales$ 450, 000 $ 455, 000 $ 455, 000 $ 460, 000 Projected Sales$ 450, 000 $ 523, 250 $ 523, 250 $ 529, 000 Cost of Goods Sold$ 180, 000 $ 185, 000 $ 180, 000 $ 185, 000 Projected Cost$ 180, 000 $ 203, 500 $ 198, 000 $ 203, 500 Gross Profit$ 270, 000 $ 270, 000 $ 275, 000 $ 275, 000 Projected Gross Profit$ 270, 000 $ 319, 750 $ 325, 250 $ 325, 500 Less Expenses: Salaries$ 80, 000 $ 90, 000 $ 100, 000 $ 110, 000 Advertising$ 50, 000 $ 50, 000 $ 50, 000 $ 50, 000 Increase in Advertising / 1996 $ 100, 000 $ 50, 000 $ 50, 000 $ 50, 000 Interest$ 60, 000 $ 60, 000 $ 60, 000 $ 60, 000 Depreciation$ 40, 000 $ 50, 000 $ 55, 000 $ 65, 000 Total Expenses$ 230, 000 $ 250, 000 $ 265, 000 $ 285, 000 Projected Expenses$ 280, 000 $ 250, 000 $ 265, 000 $ 285, 000 Net Profit$ 40, 000 $ 20, 000 $ 10, 000 -$ 10, 000 Projected Net Profit-$ 10, 000 $ 69, 750 $ 60, 250 $ 40, 500 Increase in profit$ 160, 500
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Research essay sample on Gross Profit Net Profit
