#accounting #audition #finance #economics PART #9 For a business to achieve its planned profit, effort alone is not enough; proper methods, formulas, and strategies are required. Let’s look at it clearly:daldalaan tokko bu’aa karoorfate bira gahuuf carraaqqiin qofa hin gahu; mala, foormulaa fi tooftaa sirrii barbaachisa. Mee sirnaan haa ilaallu: 1. Clear Planning( Karoorri ifaa) • Set your goal clearly, for example: “to earn 50,000 Birr profit in one month.” • Your plan should be SMART: o Specific o Measurable o Achievable o Relevant o Time-bound • Kaayyoo kee ifatti kaa’i: fakkeenyaaf “ji’a tokko keessatti bu’aa Birr 50,000 argachuuf”. Karoorri kee miidhagaa haa ta’u: ,ifaa , kan safaramu, kan danda’amu , barbaachisaa ,,yeroo qabatu 2. 2. Profit Formula How is profit calculated? Profit=Revenue−ExpensesProfit = Revenue - ExpensesProfit=Revenue−Expenses 2-Profit Formula( Foormulaa Bu’aa) Bu’aan akkamiin shallagama? Profit=Revenue−Expenses • Revenue = Price × Quantity sold • Expenses = All costs (purchase, transport, rent, salary, etc.) Therefore: • Increase revenue (increase sales) • Reduce expenses (cut unnecessary costs) 3. Break-Even Point (Bakka bu’aa fi kasaaraa wal qixxaatan) A business must know how much it needs to sell before making profit: Know how many units to sell Set the right price Daldalaan tokko bu’aa argachuu dura hanga baasii isaa deebifatu beekuu qaba: Fixed Costs Break Even Point = ------------------------------ Selling Price−Variable Cost • Kuni : Meeqa gurguruu akka qabdu beekuufi Gatii sirrii murteessuuf si gargaara 4. Sales Strategies( Tooftaa Gurgurtaa) • Increase awareness (promotion, social media, shop presentation) • Take care of customers (good service) • Compare prices with the market 5. Financial Management (Bulchiinsa Maallaqaa) • Keep proper records (Income Statement, Cash Book) • Track income and expenses regularly • Manage debt properly 6. Profit Improvement Strategies (Tooftaa Bu’aa Guddisuu) • Slightly increase price (improve margin) Gatii xiqqoo dabalu (margin improve gochuu • Increase sales volume /Focus on fast-moving products Meeshaa saffisaan socho’u irratti xiyyeeffachuu 7. Analysis ( Xiinxala) • Review profit weekly/monthly • Identify what is working and what is not • Make adjustments 8. Risk Management (Balaa Ittisuu) • Avoid overstocking • Don’t invest all money in one place • Diversify activities Gabaabumatti: Bu’aa = Galii guddisuu + Baasii xiqqeessuu + Tooftaa sirrii fayyadamuu • 9. Margin Beekuu Margin is the profit earned per unit (per item) • Profit is total profit, while margin is per unit before fixed costs Bu’aa Item tokko irraa argamu baruu (per unit) garaagarummaan Profit fi Margin Bu’aan kan waliigalaa irraa argamu yoo ta’u kun immoo tokkoon isheerraa osoo Fixed Cost hin dabaatiin bu’aa argamuudha. Margin beekuun maaliif barbaachisa? 1. Bu’aa ni murteessa • Yoo margin hin beekne → bu’aa ni argatta moo hin argattu hin beektu 2. Gatii murteessuuf • Gatii xiqqeessuu ykn guddisuu akka qabdu si agarsiisa 3. Break-even beekuu • Meeqa gurguruu akka qabdu si hima 4. Murtoo daldalaa • Meeshaan gurgurtu bu’aa qabaa moo hin qabne adda baasta FORMULA Margin = Selling Price − Variable Cost FKN Gaaffii 1-Kennamaa armaan gadii irratti hundaa’uun barbaadamoota hojjedhu • Fixed cost = 20,000 • Variable cost (ji’a) = 30,000 • Gatii gurgurtaa daabboo 1 = 10Birr • Unit per Month 4000 Bread Barbaadamaa A) Variable cost per unit B) Margine C) Break-even ANSWER : A) Unit VC = Total VC / Unit Unit Vc = ( 30,000/4000) = 7.50 B ) Margin = S/Price – VC = 10 -7.50 Margin = 2.50 CHECK------ Variable cost - @db.accountant