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


Tyutyukin V. K.
(about the author)

Tyutyukin Viktor Konstantinovich – (Saint Petersburg State University)

Published in:
Russian Journal of Entrepreneurship
– Volume 19, Number 7 (July 2018)

JEL classification: F17, M11, M21, С63

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


Citation:
Tyutyukin V. K. (2018). Calculation of sales volume to establish the feasibility of opening the branch of the company. Russian Journal of Entrepreneurship, 19(7), 2125-2132. doi: 10.18334/rp.19.7.39250


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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.








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

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