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.