Hello,

Looking for some help with predicting revenue growth for a company.
Mainly I'd like a spreadsheet to show growth. We will be lauching
products each month. Starting with 10 products. Each month we will
launch 8 additional units. The units revenue growth is as follows:
Month 1: $200
Month 2: $500
Month 3: $1000
Month 4: $2500
Month 5: $5000
Month 6: $5500
Month 7: $6500
Month 8: $7500
Month 9: $8500
Month 10: $9500
Month 11 $10500
Month 12 $11500

I need an equation and chart showing overall revenue by month taking
the above growth rate. How much revenue would be generated each month
for a year starting with 10 units in January and adding 8 units per
month. Ie, at the end of the year there would be 98 units. I just need
to show revenue by month on an excel spreadhseet and know the formula.

Thanks!

Mike

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Request for Question Clarification by elmarto-ga on 02 Mar 2005 14:56 PST

Hi bostonman!
The revenues you state ($200, $500, etc) are overall or per product?
That is, do you mean that the revenue in the first month is $2000
($200 for each of the 10 products) or $200 ($20 per product)? Would
the revenue in the second month be $500 or $9000 ($500 for each of the
18 products)?

Best regards,
elmarto

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Clarification of Question by bostonman-ga on 02 Mar 2005 15:17 PST

Hi,

The revenue in month 1 would be $2000 based on the 10 unites. The
revenue breakdown by month that I listed is per product...meaning each
unit will generate that much in monthly revenue and grow at that
rate...month 1 a single unit would generate $200 but at month 12 would
be $11,500... We just want to figure out monthly growth as we add
units each month and as each adds to monthly revenue.

Best,

Mike

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Clarification of Question by bostonman-ga on 02 Mar 2005 15:21 PST

In month two we would have 10 units generating $500 each and then add
8 units which would generate $200 each do overall revenue wouuld be
$6,600...Then in month  we would have 10 units generating $1000 each,
8 Units generating $500 each and 8 more units generating $200
each...see what I mean?

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Request for Question Clarification by elmarto-ga on 03 Mar 2005 04:13 PST

Hi bostonman!
Would you still like me to post an Excel spreadsheet and chart as an answer?

Best wishes,
elmarto

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Clarification of Question by bostonman-ga on 03 Mar 2005 04:39 PST

Yeah, I need a spreadsheet. I need to be able to change the variables
and have it update accordingly. So I could have input fields for the
12 growth month and it would update accordingly so we can make
different forecasting models based on different growth rates.

Hi bostonman!
You can download the Excel spreadsheet I made from the following link

http://www.angelfire.com/alt/elmarto/googleanswers/483641Revenue.xls
(Right-click on this link and choose Save Target As...)

I've included the ability of changing the revenue growth per month,
the number of initial products, and the number of products that are
added per month. I think the spreadsheet is pretty self-explanatory,
but if you don't understand how to make the changes you intend to, or
if you feel something's missing from it, please don't hesitate to
request clarification.

Best wishes!
elmarto

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Clarification of Answer by elmarto-ga on 03 Mar 2005 05:48 PST

Something went wrong with the link. Here it is again:

http://www.angelfire.com/alt/elmarto/googleanswers/483641Revenue.xls

Regards,
elmarto

Here is one way.

For the 1st month,
Revenue = 10(200) = $2,000.

For the 2nd month,
Revenue = 10(500) +8(200) = $6,600.

For the 3rd month,
Revenue = 10(1000) +8(200+500) = $15,600.

For the 4th month,
Revenue = 10(2500) +8(200+500+1000) = $38,600.

For the 5th month,
Revenue = 10(5000) +8(200+500+1000+2500) = $83,600.

For the 6th month,
Revenue = 10(5500) +8(200+500+1000+2500+5000) = $128,600.

For the 7th month,
Revenue = 10(6500) +8(200+500+1000+2500+5000+5500) = $182,600.

For the 8th month,
Revenue = 10(7500) +8(200+500+1000+2500+5000+5500+6500) = $244,600.

For the 9th month,
Revenue = 10(8500) +8(200+500+1000+2500+5000+5500+6500+7500) = $314,600.

For the 10th month,
Revenue = 10(9500) +8(200+500+1000+2500+5000+5500+6500+7500+8500) = $392,600.

For the 11th month,
Revenue = 10(10500) +8(200+500+1000+2500+5000+5500+6500+7500+8500+9500) = $478,600.

For the 12th month,
Revenue = 10(11500) +8(200+500+1000+2500+5000+5500+6500+7500+8500+9500+10500)
= $572,600.

That is it.

Can you graph that? The graph looks like the first-quadrant half of a
vertical parabola that opens upward whose vertex is at (0,0).
Like y = a(x^2), where x is for months and y is for revenues.

------------
I know, I know. You are asking for spreadsheet formulas. But that is
too complicated for me. Too many inputs. I am used to finding
easier/faster solutions to problems---rules or no rules. There must
many ways to solve a problem. Why stick to one?

Like the one above. Is it not easier to just copy that for a previous
month, paste it below, and then just change some inputs to get that
for the next month?
Besides, I am not an expert on doing spreadsheets.

This is just a comment, so....