How much must sales increase to cover an

increase in the marketing budget of $X?

Period or pro forma financial information

% Sales

Source

Period total sales:

Income Statement

Period Direct Job Costs (Cost of Goods Sold):

Income Statement

Gross Profit (Contribution Margin):

Previous period Fixed Costs (Operating and Overhead):

Income Statement

Marketing campaign analysis

Amount to be added to Advertising budget ($X):

Average contract price of new project:

Average contribution margin for each project:

Expected Gross Profit per Project (based on current contribution margin):

Break-even effect of marketing investment

Previous period Break-even Sales:

Adjusted annual break-even:

Change in annual sales necessary to afford additional marketing expense and break-even:

Number of new projects necessary to cover additional marketing expense:

To breakeven on the marketing expenditure entered requires an increase in sales of:

That increased sales amount represents the sale of

average projects

You currently average

projects per period

Average Fixed Cost (G&A) expenses for each project is

Profit effect of marketing investment

Effect on profit if:

Net Gross Profit (Loss)

Adjusted Profit After Expense

Period ROI

0

no new projects are sold ($):

new project(s) sold ($):

new project(s) sold ($):

new project(s) sold ($):

Analysis if amount is added to Advertising Budget (at current Contribution Margin)

The results above assume Previous period Fixed Costs (Operating and Overhead) remain constant.