Five Year Strategic Forecast Costs for Call Center

Customers per call operator 40

% Customer Growth
Inflation
Annual Fixed Costs
Variable Overhead
Call Operator Staff Cost
20%
3.0%
$250,000 fixed + inflation
$100 per customer + inflation
$65,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 600 720 864 1,037
Number of Call Operators 13.00 15.00 18.00 22.00 26.00
Overhead cost per customer $100 $103 $106 $109 $113
Cost per Operator $65,000 $66,950 $68,959 $71,027 $73,158

Costings
Fixed Costs $250,000 $257,500 $265,225 $273,182 $281,377
Overheads $50,000 $61,800 $76,385 $94,412 $116,693
Call Staff Costs $845,000 $1,004,250 $1,241,253 $1,562,600 $1,902,110
Total Costs $1,145,000 $1,323,550 $1,582,863 $1,930,193 $2,300,180
Five Year Strategic Forecast Costs for Call Center
Best Case Base Case Worst Case
Customers per call operator 40 40 40 40
% Customer Growth 20% 20% 20% 20%
Inflation 3% 3% 3% 3%
Annual Fixed Costs $250,000 $250,000 $250,000 $250,000 fixed + inflation
Variable Overhead $100 $100 $100 $100 per customer + inflation
Call Operator Staff Cost $65,000 $65,000 $65,000 $65,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 600 720 864 1,037
Number of Call Operators 13.00 15.00 18.00 22.00 26.00
Overhead cost per customer $100 $103 $106 $109 $113
Cost per Operator $65,000 $66,950 $68,959 $71,027 $73,158

Costings
Fixed Costs $250,000 $257,500 $265,225 $273,182 $281,377
Overheads $50,000 $61,800 $76,385 $94,412 $116,693
Call Staff Costs $845,000 $1,004,250 $1,241,253 $1,562,600 $1,902,110
Total Costs $1,145,000 $1,323,550 $1,582,863 $1,930,193 $2,300,180
mer + inflation
Five Year Strategic Forecast Costs for Call Center
Best Case Base Case Worst Case
Customers per call operator 40 35 40 45
% Customer Growth 20% 25% 20% 15%
Inflation 3% 2.5% 3.0% 3.5%
Annual Fixed Costs $250,000 $225,000 $250,000 $275,000 fixed + inflation
Variable Overhead $100 $90 $100 $110 per customer + inflation
Call Operator Staff Cost $65,000 $60,000 $65,000 $70,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 600 720 864 1,037
Number of Call Operators 13.00 15.00 18.00 22.00 26.00
Overhead cost per customer $100 $103 $106 $109 $113
Cost per Operator $65,000 $66,950 $68,959 $71,027 $73,158

Costings
Fixed Costs $250,000 $257,500 $265,225 $273,182 $281,377
Overheads $50,000 $61,800 $76,385 $94,412 $116,693
Call Staff Costs $845,000 $1,004,250 $1,241,253 $1,562,600 $1,902,110
Total Costs $1,145,000 $1,323,550 $1,582,863 $1,930,193 $2,300,180
mer + inflation
Five Year Strategic Forecast Costs for Call Center Scenario: Base Case
Best Case Base Case Worst Case
Customers per call operator 40 35 40 45
% Customer Growth 20% 25% 20% 15%
Inflation 3% 2.5% 3.0% 3.5%
Annual Fixed Costs $250,000 $225,000 $250,000 $275,000 fixed + inflation
Variable Overhead $100 $90 $100 $110 per customer + inflation
Call Operator Staff Cost $65,000 $60,000 $65,000 $70,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 600 720 864 1,037
Number of Call Operators 13.00 15.00 18.00 22.00 26.00
Overhead cost per customer $100 $103 $106 $109 $113
Cost per Operator $65,000 $66,950 $68,959 $71,027 $73,158

Costings
Fixed Costs $250,000 $257,500 $265,225 $273,182 $281,377
Overheads $50,000 $61,800 $76,385 $94,412 $116,693
Call Staff Costs $845,000 $1,004,250 $1,241,253 $1,562,600 $1,902,110
Total Costs $1,145,000 $1,323,550 $1,582,863 $1,930,193 $2,300,180
mer + inflation
Five Year Strategic Forecast Costs for Call Center Scenario: Base Case
Best Case Base Case Worst Case
Customers per call operator 40 35 40 45
% Customer Growth 20% 25% 20% 15%
Inflation 3.0% 2.5% 3.0% 3.5%
Annual Fixed Costs $250,000 $225,000 $250,000 $275,000 fixed + inflation
Variable Overhead $100 $90 $100 $110 per customer + inflation
Call Operator Staff Cost $65,000 $60,000 $65,000 $70,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 600 720 864 1,037
Number of Call Operators 13.00 15.00 18.00 22.00 26.00
Overhead cost per customer $100 $103 $106 $109 $113
Cost per Operator $65,000 $66,950 $68,959 $71,027 $73,158

Costings
Fixed Costs $250,000 $257,500 $265,225 $273,182 $281,377
Overheads $50,000 $61,800 $76,385 $94,412 $116,693
Call Staff Costs $845,000 $1,004,250 $1,241,253 $1,562,600 $1,902,110
Total Costs $1,145,000 $1,323,550 $1,582,863 $1,930,193 $2,300,180
mer + inflation
Five Year Strategic Forecast Costs for Call Center Scenario: Best Case
Best Case Base Case Worst Case
Customers per call operator 35 35 40 45
% Customer Growth 25% 25% 20% 15%
Inflation 2.5% 2.5% 3.0% 3.5%
Annual Fixed Costs $225,000 $225,000 $250,000 $275,000 fixed + inflation
Variable Overhead $90 $90 $100 $110 per customer + inflation
Call Operator Staff Cost $60,000 $60,000 $65,000 $70,000 per staff + inflation

Year 1 Year 2 Year 3 Year 4 Year 5

Workings
Forecast customers 500 625 781 977 1,221
Number of Call Operators 15.00 18.00 23.00 28.00 35.00
Overhead cost per customer $90 $92 $95 $97 $99
Cost per Operator $60,000 $61,500 $63,038 $64,613 $66,229

Costings
Fixed Costs $225,000 $230,625 $236,391 $242,300 $248,358
Overheads $45,000 $57,656 $73,872 $94,649 $121,269
Call Staff Costs $900,000 $1,107,000 $1,449,863 $1,809,176 $2,318,007
Total Costs $1,170,000 $1,395,281 $1,760,125 $2,146,125 $2,687,633
mer + inflation
Profit & Loss Analysis Our Company Income Statement Summary

[42] [42]
Sales Revenue $29,502 Sales Revenue $29,502
Fixed Costs Fixed Costs $15,000
Advertising $1,000 Variable Costs $8,627
Accounting, Legal $200 Total Costs $23,627
Depreciation $600 Total Profit $5,875
Interest Expense $1,200 Profit Margin 20%
Insurance $1,500
Manufacturing Overhead $2,000
Allocated Staff $5,500
Allocated Rent $2,200
Allocated Utilities $800
Total Fixed Costs $15,000

Variable Costs
Variable Costs
Manufacturing Cost $7,152
Sales Commission $1,475
Total Variable Cost $8,627

Total Costs $23,627

Total Profit $5,875
Profit Margin 20%
Assumptions
Select range A9:B15 and then select
8,940 Units sold Whatif Analysis from the Data tab
and choose Data Table from the
$3.30 Sales price per unit options as shown in figure 86 to
$0.80 Cost per unit show the dialog box in figure 87.
Link the column input cell field to
5% Comission cell A4 to complete the Data Table
as shown in figure 88 of Financial
Sensitivity of Profit Margin to changes in Sales Price Modeling in Excel for Dummies.
20%
$3.00 12%
$3.10 15%
$3.20 18%
$3.30 20%
$3.40 22%
$3.50 24%

Sensitivity of Total Profit to changes in Sales Price and Commission

2.5% 5.0% 7.5% 10.0%
$3.00
$3.10
$3.20
$3.30
$3.40
$3.50
Profit & Loss Analysis Our Company Income Statement Summary

[42] [42]
Sales Revenue $29,502 Sales Revenue $29,502
Fixed Costs Fixed Costs $15,000
Advertising $1,000 Variable Costs $8,627
Accounting, Legal $200 Total Costs $23,627
Depreciation $600 Total Profit $5,875
Interest Expense $1,200 Profit Margin 20%
Insurance $1,500
Manufacturing Overhead $2,000
Allocated Staff $5,500
Allocated Rent $2,200
Allocated Utilities $800
Total Fixed Costs $15,000

Variable Costs
Variable Costs
Manufacturing Cost $7,152
Sales Commission $1,475
Total Variable Cost $8,627

Total Costs $23,627

Total Profit $5,875
Profit Margin 20%
Assumptions

8,940 Units sold

$3.30 Sales price per unit
$0.80 Cost per unit
5% Comission

Sensitivity of Profit Margin to changes in Sales Price

20%
$3.00 12%
$3.10 15%
$3.20 18% Select range A18:B24 and then
$3.30 20% select Whatif Analysis from the
Data tab and choose Data Table to
$3.40 22% show the dialog box in figure 89.
$3.50 24% Link the column input cell field to
cell A4, and the row input cell field
to cell A5 to complete the Data Table
Sensitivity of Total Profit to changes in Sales Price and Cost per Unit as shown in figure 810 of Financial
Modeling in Excel for Dummies.
$5,875 $0.75 $0.80 $0.85 $0.90
$3.00
$3.10
$3.20
$3.30
$3.40
$3.50
 ge A18:B24 and then
atif Analysis from the
and choose Data Table to
dialog box in figure 89.
olumn input cell field to
nd the row input cell field
to complete the Data Table
in figure 810 of Financial
in Excel for Dummies.
Profit & Loss Analysis Our Company Income Statement Summary

[42] [42]
Sales Revenue $29,502 Sales Revenue $29,502
Fixed Costs Fixed Costs $15,000
Advertising $1,000 Variable Costs $8,627
Accounting, Legal $200 Total Costs $23,627
Depreciation $600 Total Profit $5,875
Interest Expense $1,200 Profit Margin 20%
Insurance $1,500
Manufacturing Overhead $2,000
Allocated Staff $5,500
Allocated Rent $2,200
Allocated Utilities $800
Total Fixed Costs $15,000

Variable Costs
Variable Costs
Manufacturing Cost $7,152
Sales Commission $1,475
Total Variable Cost $8,627

Total Costs $23,627

Total Profit $5,875
Profit Margin 20%
 Assumptions

8,940 Units sold

$3.30 Sales price per unit For instructions of how to complete
this model, see chapter 8 of
$0.80 Cost per unit Financial Modeling in Excel for
5% Comission Dummies.

Sensitivity of Profit Margin to changes in Sales Price

20%
$3.00 12%
$3.10 15%
$3.20 18%
$3.30 20%
$3.40 22%
$3.50 24%

Sensitivity of Total Profit to changes in Sales Price and Cost per Unit
Probability Weighting 10% 40% 25% 25% 100% Probability Weighting Table
$0.75 $0.80 $0.85 $0.90
10% $3.00
15% $3.10
15% $3.20
40% $3.30
10% $3.40
10% $3.50
100%
tructions of how to complete
odel, see chapter 8 of
al Modeling in Excel for
ies.

ty Weighting Table Probability Weighting Calculations

Probability Weighted Predicted Outcome:

Profit & Loss Analysis Our Company Income Statement Summary

[42] [42]
Sales Revenue $29,502 Sales Revenue $29,502
Fixed Costs Fixed Costs $15,000
Advertising $1,000 Variable Costs $8,627
Accounting, Legal $200 Total Costs $23,627
Depreciation $600 Total Profit $5,875
Interest Expense $1,200 Profit Margin 20%
Insurance $1,500
Manufacturing Overhead $2,000
Allocated Staff $5,500
Allocated Rent $2,200
Allocated Utilities $800
Total Fixed Costs $15,000

Variable Costs
Variable Costs
Manufacturing Cost $7,152
Sales Commission $1,475
Total Variable Cost $8,627

Total Costs $23,627

Total Profit $5,875
Profit Margin 20%
 Assumptions

8,940 Units sold

$3.30 Sales price per unit
$0.80 Cost per unit For instructions of how to complete
this model, see chapter 8 of
5% Comission Financial Modeling in Excel for
Dummies.
Sensitivity of Profit Margin to changes in Sales Price
20%
$3.00 12%
$3.10 15%
$3.20 18%
$3.30 20%
$3.40 22%
$3.50 24%

Sensitivity of Total Profit to changes in Sales Price and Cost per Unit
Probability Weighting 10% 40% 25% 25% 100% Probability Weighting Table
$5,875 $0.75 $0.80 $0.85 $0.90
10% $3.00 $5,875 $5,875 $5,875 $5,875 1.00% 4.00%
15% $3.10 $5,875 $5,875 $5,875 $5,875 1.50% 6.00%
15% $3.20 $5,875 $5,875 $5,875 $5,875 1.50% 6.00%
40% $3.30 $5,875 $5,875 $5,875 $5,875 4.00% 16.00%
10% $3.40 $5,875 $5,875 $5,875 $5,875 1.00% 4.00%
10% $3.50 $5,875 $5,875 $5,875 $5,875 1.00% 4.00%
100%
ons of how to complete
see chapter 8 of
odeling in Excel for

ty Weighting Table Probability Weighting Calculations

2.50% 2.50%
3.75% 3.75%
3.75% 3.75%
10.00% 10.00%
2.50% 2.50%
2.50% 2.50%
100% Probability Weighted Predicted Outcome:

Profit & Loss Analysis Our Company Income Statement Summary

[42] [42]
Sales Revenue $29,502 Sales Revenue $29,502
Fixed Costs Fixed Costs $15,000
Advertising $1,000 Variable Costs $8,627
Accounting, Legal $200 Total Costs $23,627
Depreciation $600 Total Profit $5,875
Interest Expense $1,200 Profit Margin 20%
Insurance $1,500
Manufacturing Overhead $2,000
Allocated Staff $5,500
Allocated Rent $2,200
Allocated Utilities $800
Total Fixed Costs $15,000

Variable Costs
Variable Costs
Manufacturing Cost $7,152
Sales Commission $1,475
Total Variable Cost $8,627

Total Costs $23,627

Total Profit $5,875
Profit Margin 20%
 Assumptions

8,940 Units sold

$3.30 Sales price per unit
$0.80 Cost per unit
For instructions of how to complete
5% Comission this model, see chapter 8 of
Financial Modeling in Excel for
Sensitivity of Profit Margin to changes in Sales Price Dummies.
20%
$3.00 12%
$3.10 15%
$3.20 18%
$3.30 20%
$3.40 22%
$3.50 24%

Sensitivity of Total Profit to changes in Sales Price and Cost per Unit
Probability Weighting 10% 40% 25% 25% 100% Probability Weighting Table
$5,875 $0.75 $0.80 $0.85 $0.90
10% $3.00 $3,774 $3,327 $2,880 $2,433 1.00% 4.00%
15% $3.10 $4,623 $4,176 $3,729 $3,282 1.50% 6.00%
15% $3.20 $5,473 $5,026 $4,579 $4,132 1.50% 6.00%
40% $3.30 $6,322 $5,875 $5,428 $4,981 4.00% 16.00%
10% $3.40 $7,171 $6,724 $6,277 $5,830 1.00% 4.00%
10% $3.50 $8,021 $7,574 $7,127 $6,680 1.00% 4.00%
100%
ty Weighting Table Probability Weighting Calculations

2.50% 2.50% $38 $133 $72 $61

3.75% 3.75% $69 $251 $140 $123
3.75% 3.75% $82 $302 $172 $155
10.00% 10.00% $253 $940 $543 $498
2.50% 2.50% $72 $269 $157 $146
2.50% 2.50% $80 $303 $178 $167
100% Probability Weighted Predicted Outcome: $5,202

MORTGAGE CALCULATOR

Loan Inputs: Select cell B11 and press the fx button

next to the formula bar to display the
dialog box as shown in figure 814 of
Loan Amount $550,000 Financial Modeling in Excel for
Dummies.
Interest Rate 4.50%

Term of Loan (Years) 25

Monthly Repayment $3,057

MORTGAGE CALCULATOR

Loan Inputs: On the Data tab, in the Forecast

section of the Ribbon, click the What
if Analysis icon, and select Scenario
Loan Amount $550,000 Manager from the dropdown list.
Press Edit to display the dialog box as
shown in figures 815, 816 and 817
Interest Rate 5.00% of Financial Modeling in Excel for
Dummies.
Term of Loan (Years) 30

Monthly Repayment $2,953