Setup Information - Single Breakpoint and Multiple Breakpoints

The setup information for a single breakpoint is:

Growth Pattern: FIXED

Growth Pattern Amount Year 01: 1,000

Breakpoint Amount: 500

Sales Breakpoint Percentage: 5

Period 01 Sales Amount: 15,000

Period 02 Sales Amount: 20,000

Period 03 Sales Amount: 25,000

Recapture Amount for Year 1 = 1,200

For multiple breakpoints, the system uses the same growth pattern, periods, sales amounts, and recapture amounts as described in the setup information for a single breakpoint:

1st Breakpoint Amount: 500

1st Sales Breakpoint Percentage: 5

2nd Breakpoint Amount: 20,000

2nd Sales Breakpoint Percentage: 4

3rd Breakpoint Amount: 40,000

3rd Sales Breakpoint Percentage: 3

Note: The setup information uses a growth pattern that is a fixed amount. In the calculations that follow, the system adds the growth pattern amount to the period sales amount. If the growth pattern is a percentage, instead of a fixed amount, the system multiplies the period sales by the percentage and adds the result to the period sales amount. Stated differently, the system multiplies the period sales by 1+ the growth pattern percentage. For example, if the growth pattern is set up for five percent, the system multiplies the period sales by 1.05.