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Calculation of Revenue Surplus after the Subtraction of Cost of Goods and other Operating Costs (Interim Result - Not Final)

Operating_Income_Loss.Rd

This function calculates the estimated revenue surplus after subtracting the cost of goods, officer compensation, employee wages and other operating expenses and outputs an interim profit figure before depreciation, interest income, interest expense and secondary sources of income are taken into account.

Usage

Operating_Income_Loss(
  Total_Estimated_Revenue,
  Gross_Margin_Percentage = 0.2446
)

Arguments

Total_Estimated_Revenue

Total estimated revenue based on market size/location.

Gross_Margin_Percentage

User-selected gross margin percentage (default taken from Bizminer).

Value

The output returns the estimated revenue surplus (revenue left over) after the subtraction of the cost of goods sold and operating expenses (minus depreciation).

Details

This function employs the user-selected gross margin percentage as an argument and calls the functions "Cost_of_Goods_Sold()", "Officer_Compensation()", "Employee_Wages()" and "Other_Operating_Expense()". This function is based upon calculations originally formulated by FFED ISU Extension and Outreach.

Author

Aaron Null