Calculation of sales volume to establish the feasibility of opening the branch of the company

Tyutyukin V. K.1
1 Санкт-Петербургский государственный университет

Journal paper

Russian Journal of Entrepreneurship *
Volume 19, Number 7 (July 2018)
* Этот журнал не выпускается в Первом экономическом издательстве

Citation:

Abstract:
Firm in any country is interested in increasing its consumption, and consequently trade, particularly foreign trade due to the discovery of its affiliates. Advisable or not to open such branch office is proposed, depending on whether the trade in this profitable or unprofitable, i.e., exceeds or not the volume of sales the breakeven point. For this comparison, we consider the calculation of both these quantities.For sales we considered two kinds of average and predictable.When calculating the average volume of sales, i.e. the intensity of the demand, it is assumed that the probability of filing a demand for a particular number of units of the goods or has the Poisson form, or is subjective. To calculate the projected volume of sales built a linear predictive model from threeimportant factors – the number of city residents, the cost of advertising and the item of goods sold. Calculation of break-even point are considered in relation to shopping store.

Keywords: break-even point, forecasting of product sales, financial strength margin, customer flow, subjective probabilities, Poisson flow, demand intensity

JEL-classification: M11, M21, F17, С63

References:

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Точка безубыточностиFinances-analysis. Retrieved from https://www.finances-analysis.ru/bep/break-even-point.htm

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