Computation Method 2 (Cumulative) - Single Breakpoint

The system calculates the sales overage amount for each period using the formula:

[(cumulative period sales) + (growth pattern) –(breakpoint amount)] x (sales breakpoint percentage) – (prior gross billings) – (recapture amount / 12)

Using the setup information for a single breakpoint, the system derives the sales overage amounts for each period:

• Period 01: (15,000 + 1,000 − 500) × 0.05 − 100 = 675

• Period 02: (35,000 + 1,000 − 500) × 0.05 − 675 − 100 = 1,000

• Period 03: (60,000 + 1,000 – 500) × 0.05 − 675 − 1,000 − 100 = 1,250