This Year 500,000 New Businesses Will Start And 400,000 Will Fail – Why?

What is the Best Business Decision?

Should you focus on increasing your sales or reducing your costs to increase your profits by $1,000?

The following table will help you answer this question.

A.     What is your profit percentage? 

B.     What amount of incremental sales is needed to increase
         profits by $1,000?

C.     What amount of cost reduction is required to increase
         profits by $1,000?

A	B	C
Corporate Net Profit %	Required Sales Increase $	Required Cost Reduction $
15 12 10 8 6 5 4 3 2 1	$6,667 $8,333 $10,000 $12,500 $16,667 $20,000 $25,000 $33,333 $50,000 $100,000	$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000