Example A: A School with sales of $7,000
1. Earn $400 (Earnings Level 1- 10%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $600 (Earnings Level 2 – 20%) on the next $3,000 in sales ($4,001 to $7,000);
$1,000 is total profit in cash (14.3% of $7,000).
School A decides to convert all its cash profit into books. The school buys $1,500 worth of books, but it pays only $1,000 for them.* So, of the school’s $1,000 profit, it takes $0 in cash, and $1,500 in books.
*Schools may choose to take any part of their cash profit to convert it into Book Fairs books. We will assist schools in calculating these totals using the ratio of $100 cash = $150 in Book Fairs books.
Example B: A School with sales of $12,000
1. Earn $400 (Earnings Level 1- 10%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $1,200 (Earnings Level 2- 20%) on the next $6,000 in sales ($4,001 to $10,000);
3. Plus $500 (Earnings Level 3- 25%) on the next $2,000 in sales ($10,001 to $12,000);
4. Plus $400 (Bonus Level B) for reaching $10,000.
$2,500 is total profit in cash (20.8% of $12,000).
Plus $250 of books (Bonus Level A) for reaching $8,000 in sales.
School B decides to buy some books with its profit. The school buys $150 worth of books, but it pays only $100 for them.* So, of its $2,500 profit, it takes $2,400 in cash, and $150 in books. And, for reaching Bonus Level A, it gets another $250 in books.
Example C: A School with sales of $18,000
1. Earn $400 (Earnings Level 1- 10%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $1,200 (Earnings Level 2- 20%) on the next $6,000 in sales ($4,001 to $10,000);
3. Plus $2,000 (Earnings Level 3- 25%) on the next $8,000 in sales ($10,001 to $18,000);
4. Plus $400 (Bonus Level B) for reaching $10,000.
5. Plus $500 (Bonus Level C) for reaching $16,000.
$4,500 is total profit in cash (25.0% of $18,000).
Plus, $250 in books (Bonus Level A) for reaching $8,000 in sales.
School C decides to take its entire profit as cash and earns $4,500. And, for reaching Bonus Level A, it gets $250 in books.
|