How do I calculate the profit of fundraising?

It is usually the calculation of fundraising profit as easy as calculating money raised from the sale of non -profit items. The individual can begin by finding out how much it costs to produce or buy a product that will be sold in a fundraiser. Once the person comes to these costs, he can then use simple subtraction to calculate the fundraising profit. In principle, it may deduct the cost of production or production of an item from the total selling price; The answer to this basic mathematical problem is profit. In some cases, however, there are other expenditures to include the cost of product or fundraising service, such as advertising, fundraiser organization and transport or delivery. For the correct calculation of profit, these expenses must also be deducted. For example, if the leader of the organization launches fundraiser gourmet cookies, he will have to determine the cost of making cookies. If it costs $ 2.00 (USD) to produce cookies and each dose is sold for $ 5.00, the fundraiser profit for each dose is $ 3.00. If the people who have a timeAsti fundraiser, sell 1,000 lots of cookies, can calculate the total profit by multiplication. In this case, it could multiply $ 1,000 by $ 3.00 to come with a total profit of $ 3,000.

simple subtraction problems work well, when all organizations must consider, the cost of production or purchase of an item. In some cases, however, there are other costs that need to be taken into account when calculating fundraisers. For example, if an organization starts a fundraiser, which includes the sale of books for $ 20 coupons and books costs $ 10, profit would be $ 10 in each book. If the organization has to pay for transport to obtain books, it could change the profit numbers.

If the same organization pays $ 50 for $ 500, it can divide $ 50 by $ 500 for determining the cost of transporting each book. The cost of the book would be $ 0.10 in this case. Cost to obtain product nAnd fundraising would as such would be $ 10.10 USD and profit, if books were sold for $ 20, they would be $ 9.90. If 500 of these books were sold, profit would be $ 4,950. This method of calculating profits to raise funds can also be used if the organization is to include advertising, organizational or labor costs in its calculations.

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