Task Management Software for Team Collaboration
 
HomeDownloadSupportPurchase
 
Installation GuideStartUp GuideOnline Help

Profit Rate per Each Unit Sold

Profit Rate per Each Unit Sold
   
Home  » Products  » VIP Task Manager Pro  » Tutorials  » Customization Guide  » Profit Rate per Each Unit Sold

Profit Rate per Each Unit Sold

    Profit Rate per Each Unit Sold refers to [Gross Profit Margin]. Profit Rate shows how much profit you get from each dollar of the product/service cost per some time span. The profit excludes any costs associated with the production of a product or service: the cost of raw materials, labor costs, transportation costs, etc. Profit Rate per Each Unit Sold is calculated by the formula:

    Profit Rate per Each Unit Sold = Profit per unit / Revenue per unit

    Profit per unit= Revenue per unit - Cost of production per unit

    Revenue per Unit = Cost you sell your product or service.

    To calculate Cost of production per unit the following formula is used:

    Cost of production per unit = Cost of Goods Sold (COGS) / Number of units produced within some period of time.

    Cost of Goods Sold (COGS) = Cost of raw materials + labor cost + transportation cost + other costs associated with the production. Actually the formula to calculate COGS differs from company to company.

    Alternatively you can use the formula for calculating COGS by the Weighted Average Method.

    Profit Rate per Each Unit Sold is one more measure that allows to estimate the company’s progress.

    To calculate Profit rate per Each Unit Sold please follow the steps below:

  • Create the custom field "COGS" (Cost of Goods Sold) with Code "cf_cogs"
  • Add the cost of raw materials + labor cost + transportation cost + other costs that refer to production process.
  • To calculate COGS automatically you can use the following formula:

    $cf_raw_materials_cost + $cf_labor_cost + $cf_transportation_cost + $cf_other_costs

    If you use the Weighted Average Method to calculate COGS the formula may look like this:

    $cf_quantity_purchases * $cf_average_cost_per_unit

    As the value of the custom field "COGS" is the same for all units you sell, you can enter it in "Default value" field after calculating COGS for the whole project:

  • Create the custom field "Cost of production per unit" with Code "cf_cost_of_production_per_unit" and the formula:
  • $cf_cogs / X, where X is the total number of units produced over some period of time

  • Create the custom field "Revenue per unit" with Code "cf_revenue_per_unit". Add the cost you sell your product.
  • Add the custom field "Profit per unit" with Code "cf_profit_per_unit" the formula:
  •  $cf_revenue_per_unit - $cf_cost_of_production_per_unit

  • Create the custom field "Profit Rate per Each Unit Sold" with the formula:
  • $cf_profit_per_unit / $cf_revenue_per_unit

    Profit Rate per Each Unit Sold on Task List


Play demo Play Demo

TryTry It FREE
Overview VIP Task Manager

» VIP Task Manager Pro
   VIP Task Manager Std
   Testimonials
   Turnkey Solution

Available: Workdays, Monday - Friday
8 am - 8 pm GMT for Europe/Asia
1 am - 1 pm PST for America




Login:
Password:
Register
Forgot your password?
Login As:
Login As
You can log in if you are registered at one of these services:

ProductsSolutionsDownloadSupportPurchaseContactsForumVideoMy Account
Copyright © 2004 - 2017 Task Management Software
 
          
 
Site Map