Financial Aspect Of The Marketing Plan - 1400 Words

4.0 Financials This section discusses the financial aspect of the marketing plan. We will consider break-even analysis, sales forecasts, expense forecast in order to meet the marketing strategy. Break-even analysis determines the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point. This is the amount that revenues can fall while still staying above the break-even point. Expense forecasts are mostly for staff required to do the marketing activities such as advertisements, web site developments, providing printed materials. 4.1 Break-Even Analysis The break-even analysis for†¦show more content†¦The area on the right after the break-even point is the profit area, whereas the area on the left before the break-even point is the loss area. TABLE 4.2 Break-Even Analysis Volume Fixed Costs Variable Costs Total Costs Total Revenue Profits 100 $5,680.00 $360.00 $6,040.00 $1,999.00 -$4,041.00 150 $5,680.00 $540.00 $6,220.00 $2,998.50 -$3,221.50 200 $5,680.00 $720.00 $6,400.00 $3,998.00 -$2,402.00 250 $5,680.00 $900.00 $6,580.00 $4,997.50 -$1,582.50 300 $5,680.00 $1,080.00 $6,760.00 $5,997.00 -$763.00 347 $5,680.00 $1,247.59 $6,927.59 $6,927.59 $0.00 400 $5,680.00 $1,440.00 $7,120.00 $7,996.00 $876.00 450 $5,680.00 $1,620.00 $7,300.00 $8,995.50 $1,695.50 500 $5,680.00 $1,800.00 $7,480.00 $9,995.00 $2,515.00 550 $5,680.00 $1,980.00 $7,660.00 $10,994.50 $3,334.50 600 $5,680.00 $2,160.00 $7,840.00 $11,994.00 $4,154.00 650 $5,680.00 $2,340.00 $8,020.00 $12,993.50 $4,973.50 700 $5,680.00 $2,520.00 $8,200.00 $13,993.00 $5,793.00 750 $5,680.00 $2,700.00 $8,380.00 $14,992.50 $6,612.50 800 $5,680.00 $2,880.00 $8,560.00 $15,992.00 $7,432.00 850 $5,680.00 $3,060.00 $8,740.00 $16,991.50 $8,251.50 900 $5,680.00 $3,240.00 $8,920.00 $17,991.00 $9,071.00 950 $5,680.00 $3,420.00 $9,100.00 $18,990.50 $9,890.50 1000 $5,680.00 $3,600.00 $9,280.00 $19,990.00 $10,710.00 4.2 Sales Forecast iLoveMyWater forecasted optimistic sales scenario for