Solutions

                                       SOLUTIONS

Total Clients  Size of Unit Sale  Frequency of Purchase *Total Revenue

1,000               $ 100.                  2 times annually               $ 200,000.

How would a 10% increase affect my total revenue in this scenario? The Solution is to do the following:

1. Increase the existing client base by 10%

2. Increase the average unit sale price by 10%

3. Increase the number of sales to the existing client list by 10%

Answer: Total revenue would increase to $ 266,200.

Total Clients *Size of Unit Sale * Frequency of purchase * Total Revenue

1,000                   $100.                 2 times annually           $200,000.

1,100                   $110.                 2.2 times annually        $266,200.

1,100 x $ 110. = 121,000. x 2.2 = $266,200

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