Operating Profit Model Template

The Operating Profit Model Template is a valuable tool to analyze the total impact of various productions and cost variables on total profit.  On one hand, it allows you to evaluate and compare various strategies.  On the other hand, it allows you to change parameters and assumptions, and see the dynamic results.  Specifically, it allows users to vary price, units, and costs, and to compare outcomes.

Don’t worry if you are uncomfortable developing some of the parameters.  It, at least, forces you to establish assumptions.  These are expected to be revised as you see real results.  However, you then have real data to change the parameters and maximize your efforts and forecasts.

Units are frequently the driving variable.  The Operating Profit Model Template allows understanding the impact of various volumes.  Units also frequently affect cost, sourcing, and how much you will have available for marketing.  In general, you input units to drive the model.