Work Sheet for Projecting
Potential Profit Based Upon
Licensor's Sales of Newly Licensed Products
|
Work Sheet Computation Variation in Sales |
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|
I |
II |
III |
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| Sales | $5,000,000 | |||
| Cost of Sales | 2,500,000 | |||
| Gross profit on sales | 2,500,000 | |||
| Royalties paid to licensor (6%) | 300,000 | |||
| Gross profit on sales after royalties | 2,200,000 | |||
| Additional variable selling expenses (@ 10% of sales) | 500,000 | |||
| Profit from sales of licensed products before additional fixed expenses | 1,700,000 | |||
| Increases in fixed expenses due to substantial increases in sales | 200,000 | |||
| Profit attributable to superimposed sales of Licensed Products: | ||||
|
$1,500,000 | |||
|
30% | |||
NOTE: Data based upon a minimum sales volume of $5,000,000 are set forth as a guide for the work sheet computations; a licensee will utilize his projected sales volume, cost and expense percentages; a licensee should project profit based upon varying sales volumes over a period of years.
For licensing information, please contact:
International Licensing Consultants
