The goal of this calculation is to come out of this step with is a single numeric value that represents the total overage for the current RP calculation period.
To explain how we apply a breakpoint table during the RP process, let us first remind ourselves what we have so far.
At this point of the calculation process (step 5), we count with a list of sales entries that were filtered in step 3, and which represents the sales entries for the calculation period of the RP, given the dates established in that same step.
For this example, we will assume that our calculation period is January to December of the same year, and that we have consolidated the sales entries of each month into a single amount per month (given that there might be more than one sales entry for a given month), giving us the following table:
|
Month |
Sales Volume |
|---|---|
|
January |
5,000 |
|
February |
7,000 |
|
March |
3,000 |
|
April |
8,000 |
|
May |
12,000 |
|
June |
3,000 |
|
July |
4,000 |
|
August |
2,000 |
|
September |
1,000 |
|
October |
8,000 |
|
November |
10,000 |
|
December |
9,000 |
Next, we will assume that the breakpoint table configured at the lease level and valid for this period (given its effective date), is as follows:
|
Breakpoint Amount |
Overage Percentage |
|---|---|
|
2,000 |
10% |
|
4,000 |
8% |
|
4,000 |
6% |
|
8,000 |
4% |
With these two tables at hand, we can calculate the overage. We do this iteratively, starting by the first month of the calculation period, in our case January.
The detailed step-by-step explanation is provided below, but at a high level, the steps that we take are the following:
-
Add the current month’s sales volume to the accumulated sales volume so far, which initially is 0
-
Apply the breakpoint table over this accumulated sales volume, and come up with an overage value
-
To this overage value, subtract the sum of all the overages of the previous months up to this one
-
The result of step 3 is the overage of the current month
-
Go on to the next month
-
Once all months have been calculated, add the overages of each month, and this will be the final calculated overage.
Because this is a cumulative calculation, we will calculate each month in order and subtract from each of them the added overage amounts of the previous months up to the current one.
We will do this iteratively starting by the first month of our calculation period, January.
We will create a table right below, that will be populated as each month passes, to illustrate this step by step.
Before we start our iteration, let’s look at the table we want to populate. This table will be populated as we advance through the months, and by the end, our total overage will be the sum of the overage column.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
…. |
…. |
… |
… |
|
|
|
Total |
… |
Calculating January’s Overage
January’s sales amount is 5,000. Therefore, we enter this as our sales volume, and also as the accumulated one, given that we are starting from 0 in the accumulated volume.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
? |
Given our breakpoint table and the accumulated sales volume for this month (5,000), we calculate the overage for the current month below
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
0 |
4% |
0 |
|
2 |
6,000 |
0 |
6% |
0 |
|
3 |
4,000 |
1,000 |
8% |
80 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
280 |
Our calculated overage for January is 280. We add this to our table so far, and it looks like this:
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
Because this is our first month, we don’t need to do anything else.
Calculating February’s Overage
Next we move on to February. We have 7,000 sales, so we add this as a row in our table, and in the accumulated sales volume we sum the value of the previous row (5,000) plus the sales volume of February.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
? |
In our current iteration, we are calculating February, so we take the 12,000 of sales that have been accumulated so far, and apply our breakpoint table to this, as follows:
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
4,000 |
4% |
160 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
640 |
The overage amount for February is 640, but because this is a cumulative calculation, before we add it to our months table, we have to subtract the sum of all the overages that precede it.
In this case, there’s only one previous month, January, with an overage of 280, and so February’s final overage will be 640 (February’s overage) - 280 (Sum of overages up to this month excluding it).
Now we can populate our table and complete the row for February
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
|
|
Total |
280 |
|
February |
7,000 |
12,000 |
640 - 280 = 360 |
March
We apply the same steps again for March, which has 3,000 sales, starting with adding this to the accumulated sales (12,000).
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
? |
Then we apply the breakpoint table over the new accumulated sales volume (15,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
7,000 |
4% |
280 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
760 |
And we arrive at 760 as our overage for this month. Again, before adding it to our months table, we sum the previous overages (January’s 280 and February’s 360 = 640), subtract it from this month’s overage, and then add it to the table.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
|
|
Total |
640 |
|
March |
3,000 |
15,000 |
760 - 640 = 120 |
April
Initial table, add April’s sales volume (8,000) to the accumulated sales volume so far (15,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
? |
Apply breakpoint table over the new accumulated sales volume (23,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
15,000 |
4% |
600 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1,080 |
To this month’s overage (1,080), subtract the sum of previous ones (280 + 360 + 120) and add to the table.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
|
|
Total |
760 |
|
April |
8,000 |
23,000 |
1,080 - 760 = 320 |
May
Initial table, add May’s sales volume (12,000) to the accumulated sales volume so far (23,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
? |
Apply breakpoint table over the new accumulated sales volume (35,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
27,000 |
4% |
1,080 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1,560 |
To this month’s overage (1,560), subtract the sum of previous ones (280 + 360 + 120 + 320) and add to the table.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
|
|
Total |
1,080 |
|
May |
12,000 |
35,000 |
1,560 - 1,080 = 480 |
June
Initial table, add June’s sales volume (3,000) to the accumulated sales volume so far (35,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
? |
Apply breakpoint table over the new accumulated sales volume (38,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
30,000 |
4% |
1200 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1680 |
To this month’s overage (1680), subtract the sum of previous ones and add to the table.e
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
|
|
Total |
1560 |
|
June |
3,000 |
38,000 |
1680 - 1560 = 120 |
July
Initial table, add July’s sales volume (4,000) to the accumulated sales volume so far (38,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
? |
Apply breakpoint table over the new accumulated sales volume (42,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
34,000 |
4% |
1360 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1840 |
To this month’s overage (1840), subtract the sum of previous ones and add to the table.
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
|
|
Total |
1680 |
|
July |
4,000 |
42,000 |
1840 - 1680 = 160 |
August
Initial table, add August’s sales volume (2,000) to the accumulated sales volume so far (42,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
? |
Apply breakpoint table over the new accumulated sales volume (44,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
36,000 |
4% |
1,440 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1920 |
To this month’s overage (1920), subtract the sum of previous ones and add to the table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
|
|
Total |
1840 |
|
August |
2,000 |
44,000 |
1920 - 1840 = 80 |
September
Initial table, add September’s sales volume (1,000) to the accumulated sales volume so far (44,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
? |
Apply breakpoint table over the new accumulated sales volume (45,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
37,000 |
4% |
1,480 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
1,960 |
To this month’s overage (1,960), subtract the sum of previous ones and add to the table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
|
|
Total |
1,920 |
|
September |
1,000 |
45,000 |
1,960 - 1,920 = 40 |
October
Initial table, add October’s sales volume (8,000) to the accumulated sales volume so far (45,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
? |
Apply breakpoint table over the new accumulated sales volume (53,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
45,000 |
4% |
1,800 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
2,280 |
To this month’s overage (2,280), subtract the sum of previous ones and add to the table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
|
|
Total |
1,960 |
|
October |
8,000 |
53,000 |
2,280 - 1,960 = 320 |
November
Initial table, add November’s sales volume (10,000) to the accumulated sales volume so far (53,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
320 |
|
November |
10,000 |
63,000 |
? |
Apply breakpoint table over the new accumulated sales volume (63,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
55,000 |
4% |
2,200 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
2,680 |
To this month’s overage (2,680), subtract the sum of previous ones and add to the table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
320 |
|
|
|
Total |
2,280 |
|
November |
10,000 |
63,000 |
2,680 - 2,280 = 400 |
December
Initial table, add December’s sales volume (9,000) to the accumulated sales volume so far (63,000)
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
320 |
|
November |
10,000 |
63,000 |
400 |
|
December |
9,000 |
72,000 |
? |
Apply breakpoint table over the new accumulated sales volume (72,000)
|
Breakpoint Amount (what is the breakpoint amount that was exceeded?) |
Excess (by how much was this breakpoint amount exceeded?) |
Percentage (what percentage of this excess am I charging?) |
Overage (result of excess column % percentage column) |
|
|---|---|---|---|---|
|
1 |
8,000 |
64,000 |
4% |
2,560 |
|
2 |
6,000 |
2,000 |
6% |
120 |
|
3 |
4,000 |
2,000 |
8% |
160 |
|
4 |
2,000 |
2,000 |
10% |
200 |
|
5 |
|
|
Total |
3,040 |
To this month’s overage (3,040), subtract the sum of previous ones and add to the table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
280 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
320 |
|
November |
10,000 |
63,000 |
400 |
|
|
|
Total |
2,680 |
|
December |
9,000 |
72,000 |
3,040 - 2,680 = 360 |
Final Overage Amount
After calculating the last month of our calculation period, which we defined at the beginning as spanning January to December, we are left with the following table
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|
|
Month |
Sales Volume (what is the sales volume for this specific month?) |
Accumulated Sales Volume (what is the sum of all the previous sales volumes plus the current one?) |
Overage (what is the overage of this specific month?) |
|---|---|---|---|
|
January |
5,000 |
5,000 |
280 |
|
February |
7,000 |
12,000 |
360 |
|
March |
3,000 |
15,000 |
120 |
|
April |
8,000 |
23,000 |
320 |
|
May |
12,000 |
35,000 |
480 |
|
June |
3,000 |
38,000 |
120 |
|
July |
4,000 |
42,000 |
160 |
|
August |
2,000 |
44,000 |
80 |
|
September |
1,000 |
45,000 |
40 |
|
October |
8,000 |
53,000 |
320 |
|
November |
10,000 |
63,000 |
400 |
|
December |
9,000 |
72,000 |
360 |
|
|
|
Total |
3,040 |
To exit this step, all we do is sum the entire overage column, giving us 3,040. This amount is the final calculated overage, and will be the output of the current step.