How to Compute for Profit & ROI

Post on 18-Feb-2017

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Transcript of How to Compute for Profit & ROI

HOW TO COMPUTE FOR PROFIT

& RETURN OF INVESTMENT (ROI)

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SAMPLE SPREADSHEET

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FIRST, LET’S SHOW THE UPC CODES PROPERLY.

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UNIVERSAL PRODUCT CODE (UPC)

UPC consists of 12 numerical digits.

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LET’S ADD 0 TO THE FIRST UPC.

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THEN HIGHLIGHT THE NUMBERS TO BE SORTED.

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CLICK DATA THEN SORT RANGE.

click

click

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SELECT THE PREFERRED OPTIONS.

click

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Moving on …

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TO COMPUTE FOR PROFIT / ITEM

Selling Price - (Item Cost + Selling Fees) = Profit

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column B - (column C + column D) = Profit

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15.99 - (2.60 + 2.40) = 10.99

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Add column E to display ‘Profit/Item’

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Check if formula is correct.

Formula

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Repeat formula for the all the rows.

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ROI = Selling Price - (Item Cost + Selling Fees) / (Item Cost + Selling Fees)

TO COMPUTE FOR ROI / ITEM

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Remember the Order of Operations

Expressions in parenthesis are treated as one number

and must be calculated first.

Multiplication and division must be completed

before addition and subtraction.

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column B - (column C + column D) / (column C + column D) = ROI

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To illustrate: 15.99 - (2.60 + 2.40) / (2.60 + 2.40) = ROI

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To create the formula, let’s calculate first the numbers in parenthesis.

column B - (column C + column D) / (column C + column D) = ROI

2.60 + 2.40

2.60 + 2.40

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Continue solving the equation.

15.99 - 5 / 5 = ROI

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Then …

10.99 / 5 = ROI

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Add column F to display ‘ROI / Item’

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Repeat formula for the all the rows.

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To decrease the decimal numbers.

Click

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Highlight the 3 products with the best ROI in Green.

Click

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Bold the header rows, click …

Format the spreadsheet for better appreciation.

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Centre align the header rows, click …

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To borderline your selected range, click …

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Thank you.

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