The
immediacy of the ever-present need to grow sales while controlling bad debt is
portrayed by the following chart that highlights the severe impact of bad debt.
| Your
Loss | And
your net profit is | | |
2% |
3% |
4% |
5% |
6% |
| | You
will need the following amount of additional sales to offset the loss |
|
$ 1,000 |
$ 50,000 |
$ 33,333 |
$ 25,000 |
$ 20,000 |
$ 16,666 |
$ 5,000 |
$ 250,000 |
$ 166,666 |
$ 125,000 |
$ 100,000 |
$ 83,333 |
$ 10,000 |
$ 500,000 |
$ 333,333 |
$ 250,000 |
$ 200,000 |
$ 166,666 |
$ 25,000 |
$ 1,250,000 |
$ 833,333 |
$ 625,000 |
$ 500,000 |
$ 416,666 |
$ 50,000 |
$ 2,500,000 |
$ 1,666,666 |
$ 1,250,000 |
$1,000,000 |
$ 833,333 |
$ 75,000 |
$ 3,750,000 |
$ 2,500,000 |
$ 1,875,000 |
$1,500,000 |
$ 1,250,000 |
$ 100,000 |
$ 5,000,000 |
$ 3,333,333 |
$ 2,500,000 |
$2,000,000 |
$ 1,666,666 | |  |