Enter the total number of sales missed due to understocking and the average cost per sale ($) into the Cost of Understocking Calculator. The calculator will evaluate the Cost of Understocking. ## Cost of Understocking Formula The following two example problems outline the steps and information needed to calculate the Cost of Understocking. CUS = SM * ACPS Variables: • CUS is the Cost of Understocking ($)
• #SM is the total number of sales missed due to understocking
• ACPS is the average cost per sale ($) To calculate the cost of understocking, multiply the number of sales missed due to understocking by the average cost per sale. ## How to Calculate Cost of Understocking? The following steps outline how to calculate the Cost of Understocking. 1. First, determine the total number of sales missed due to understocking. 2. Next, determine the average cost per sale ($).
3. Next, gather the formula from above = CUS = #SM * ACPS.
4. Finally, calculate the Cost of Understocking.
5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem :

Use the following variables as an example problem to test your knowledge.

total number of sales missed due to understocking = 500

average cost per sale (\$) = 30

CUS = #SM * ACPS = ?