What does the paragraph mean?

What does the paragraph mean?

Sales is thus the realization of the value of production on a market. In order to be able to compare and evaluate different categories of goods, the quantity is multiplied by the sales price. This is how the value of the goods sold in a certain unit of time, the turnover, is calculated.

Does revenue equal sales?

Difference between sales and operating income While sales are limited to operating income, all income of the company is recorded in operating income.

How do you calculate revenue per employee?

The sales per employee key figure is obtained by dividing sales by the average number of employees employed in the period under consideration. The full-time equivalent FTE is used for the number of employees.

How much profit per employee?

Earnings per employee are less than $7,000. So the company is doomed to make sales and make profits, while corporations with fewer employees have significantly more freedom.

How to calculate labor productivity?

In this case, the labor productivity is calculated as follows: Labor productivity = output / labor input = 24 pieces / 8 working hours = 3 pieces/working hour.

How much turnover does an employee have to generate?

Rule of thumb: In service companies and companies without significant variable costs, it is usually sufficient if each employee generates about twice their personnel costs in additional sales.

How much turnover for salary?

How much turnover do you have to make to pay yourself a salary of 1,500 euros? Your entrepreneurial salary should account for one-half to one-third of your monthly sales. You use the rest for taxes, insurance and your company’s expenses (rent, tools, training, advertising, fees…).

How high should personnel costs be in relation to sales?

In order to generally determine the personnel costs in %, one divides the costs for the personnel shown in the BWA or balance sheet (including all ancillary costs such as social security, professional association, special payments, surcharges, etc.) by the total turnover. These should not be more than 35%.