CHOOSING THE RIGHT "TARGET MONTH"

Let’s say your corporation’s fiscal year ends in December and you have the following sales figures:

In this example, April and May 2020 are the months with a 50% decrease (or more)  in sales compared to the corresponding months of the last year.

We’ll use the Calculation method for incorporated business:

Total annual sales of preceding fiscal year – (Monthly sales of target month × 12 months)

Total sales of the preceding fiscal year are ¥5,425,000.

Despite the fact that May has the highest sales decrease rate, it’s more advantageous to select April as the “target month” since you’ll get the maximum amount of ¥2 million.

The reason why April happened to be the best option for “target month” is because it meets the following two criteria: 1) its sales have dropped by at least 50% and 2) it has the lowest sales figures in 2020 so far.

It is, therefore, may be worth waiting for a little to see what sales figure the future can bring you. 

That is, of course, if you can afford to wait.

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