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Projected Profits Essay, Research Paper

Met North Energy Corporation

4 Year Net Profit Projections

The current budget figures for the four year period 1996 – 1999 show a steady decrease in profits eventually resulting in a loss during the fourth year. The graph shows the decrease in net profit while gross profit remains virtually static and expenses increase. After an initial loss during the first year the figures indicate a healthy profit at the end of the period.

The figures in this graph from the spreadsheet clearly show the long term benefits gained by the additional $50,000 when it is added to the 1996 advertising budget.

Despite a loss of $10,000 in the first year the projected profit for the 4 year period is $160,500.

The results of the spreadsheet showing both budget options can be reduced to just one simple graph. This supported by market research would convince management as to which option to choose.

Met North Energy Corporation

Net Profit Projections



Projected Sales$450,000$523,250$523,250$529,000

Cost of Goods Sold$180,000$185,000$180,000$185,000

Projected Cost$180,000$203,500$198,000$203,500

Gross Profit$270,000$270,000$275,000$275,000

Projected Gross Profit$270,000$319,750$325,250$325,500

Less Expenses:



Increase in Advertising / 1996$100,000$50,000$50,000$50,000



Total Expenses$230,000$250,000$265,000$285,000

Projected Expenses$280,000$250,000$265,000$285,000

Net Profit$40,000$20,000$10,000-$10,000

Projected Net Profit-$10,000$69,750$60,250$40,500

Increase in profit$160,500

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