sales management marketing financial analysis review - topic 6
TRANSCRIPT
![Page 1: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/1.jpg)
Sales Management
Marketing Financial Analysis Review - Topic 6
![Page 2: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/2.jpg)
What Accounting Does & Does Not Teach
Cash Flows Are Essential for Sales Managers
Remember the Marketing Concept
![Page 3: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/3.jpg)
Profit Equation
• Profits = Revenues – Costs• Revenues = Price * Quantity Sold• Costs = (unit cost * unit sold) + fixed costs
• Sales Costs can be variable, fixed, or single lump sum
![Page 4: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/4.jpg)
Breakeven
• Breakeven = Fixed Costs / Unit Contribution• Unit Contribution = Unit Price – Unit Cost
![Page 5: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/5.jpg)
Breakeven 2
• But we usually want to make at least as much money as before. So….
• Breakeven = (Past Profit + Fixed Costs) / UC• Or • Breakeven = (Target Profit + FC) / Unit Cont.
![Page 6: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/6.jpg)
Total Contribution
• Total Contribution (or total dollar contribution) = total direct revenues – total direct costs
• This is harder to determine than you expect• Essential to what marketers do, can control,
and what their expectations are
![Page 7: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/7.jpg)
Joe the Salesperson Example
![Page 8: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/8.jpg)
Contribution Reminder
• Unit Contribution is not Total Contribution• Be sure to use all of this terminology correctly
• MONEY IS SERIOUS!
![Page 9: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/9.jpg)
Relevant Costs
• Sunk Costs• Relevant Cost Fallacy
![Page 10: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/10.jpg)
Risk is Relative
![Page 11: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/11.jpg)
Income Statement Review
• Look at example in notes
![Page 12: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/12.jpg)
Balance Sheet Example
• Look at note example
![Page 13: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/13.jpg)
Companies Keep Multiple Sets of Books
![Page 14: Sales Management Marketing Financial Analysis Review - Topic 6](https://reader035.vdocuments.us/reader035/viewer/2022062309/56649ea85503460f94bac3a8/html5/thumbnails/14.jpg)
Profit Does Not Equal Cash
• Profit is an Opinion• Cash is a Reality