Days of supply is a term used to quantify the number of days a given quantity will last under certain conditions. It can be applied to manufacturers (calculates the time between acquisition of materials and sale of finished products) and retailers (how long inventory will last without replenishing under predicted demand), among others. The calculation can also be applied to medication to determine the length of time medication will last with recommended usage.Continue Reading
Calculate the number of doses being consumed on any given day. For instance, if the medicine needs to be taken every 12 hours, the number is 2.
Determine the number of available doses. For a new bottle that contains 100 pills, the number would be 100.
Divide the inventory figure by the number of doses used daily. In this case, the result would be 100/2 = 50 days.
Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the service is used to find the prorated amount.Full Answer >
Optimal sales price is calculated as the necessary revenue to achieve a desired profit margin divided by the quantity of product units forecast to sell, explains small-business writer Gregory Hamel. A profit margin is the proportion of sales profit a business generates from revenue after subtracting production costs.Full Answer >
The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.Full Answer >
Business owners calculate gross revenue by multiplying the quantity of goods or services sold during a specific period by the sales price for each item, as explained by the Udemy website. Basically, revenue is the amount of money a company generates from its primary business activities.Full Answer >