# Revenue Driven P&L

> Based on your high-level Revenue goals, are your costs in check? Of the 3 main financial statements, your Profit & Loss statement (P&L) will tell you the most about your operational efficiency. Apply this target to individual products, geographies, or customer segments. Use this model to know, directionally, where your business is falling out of touch.

Published model on Paths: https://getpaths.io/p/revenue-driven-pnl
Values below are the base case of the published snapshot.

## Drivers

- Quantity Sold: 1,000
- Price: $100.00
- Cost per Unit: $9.75
- Refunds: 3.5%
- S&M Share: 50%
- R&D Share: 20%
- G&A Share: 5%

## Formulas

- Gross Revenue = Quantity Sold * Price  -> $100,000.00
- Net Revenue = Gross Revenue * (1 - Refunds ) -> $96,500.00
- Gross Profit = Net Revenue - COGS  -> $86,750.00
- COGS = Quantity Sold * Cost per Unit  -> $9,750.00
- Total OpEx = Sales & Marketing + Research & Development + General & Administrative  -> $75,000.00
- Sales & Marketing = Gross Revenue * S&M Share  -> $50,000.00
- Research & Development = Gross Revenue * R&D Share  -> $20,000.00
- General & Administrative = Gross Revenue * G&A Share  -> $5,000.00
- Operating Income = Gross Profit - Total OpEx  -> $11,750.00
- Gross Margin = Gross Profit / Net Revenue  -> 89.9%
- Operating Margin = Operating Income / Net Revenue  -> 12.18%