PMP Math
Essential Mathematical Formulas for PMP Certification Test
Formula
A = B + C
Example
Assume you’re in charge of a project that involves the sale of handcrafted items. You made $5,000 in sales in one month. However, some consumers returned things worth $500, while you gave other customers $300 in discounts.
So, to compute net sales:
– Total Revenue = $5,000
– Profit = $500
– Savings = $300
Total Sales – (Returns + Discounts) = Net Sales
$5,000 – ($500 + $300) = Net Sales
$800 – $5,000 = Net Sales
Total Revenue = $4,200
As a result, after deducting returns and discounts from total sales, your net sales for the month are $4,200. This is the real money collected from sales, minus returned products and discounts.
