At this stage of development of market relations, it becomes important for almost every enterprise to know the optimal volume of sales of goods, works or services.
It is necessary
General knowledge of economic analysis
Instructions
Step 1
First, you need to decide what the concept of "sales" means. Sales volume is a complex concept that includes the entire amount of revenue received by an enterprise for the sale of goods, works or services for the reporting period. To accurately determine the volume of sales, it is necessary to rely on the concept of net sales. Net sales will be equal to the total value of goods, works or services sold minus goods, works or services sold on credit.
First of all, to calculate the volume of sales, consider the general formula for calculating this value:
Rt (P) = TxP, where:
Rt is the total revenue;
P is the volume of the issue;
T is the amount of products sold.
It follows from this formula that Rt (total revenue) depends entirely on the volume of output (P) of goods, works or services and the price (T) for them.
Step 2
But if we consider the example of a firm with a perfect competition policy, we get that T = const. And in the second case, we get a model in which the function depends on the amount of products sold.
Step 3
And to conclude the drawing up of the ideal formula for calculating the volume of sales, we note that when calculating it is necessary to take into account the amount of total costs. Because the amount of total costs depends entirely on the volume of production, i.e. costs increase according to the increase in production. As a result, we conclude: the volume of sales of goods, works or services by an enterprise depends on the volume of output of goods, works or services, i.e. the number of sales of an enterprise for a certain period is set by the number of goods produced.
C (P) = Rt (P) -Ct (P), where:
C (P) - sales volume;
Сt (P) - total costs.
