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To calculate quota rent, first calculate the economic rent, which is the positive difference between the domestic price of the good and the free market price from around the world. Next, multiply that economic rent by the quantity of the good imported, and you will have the quota rent.
If you're held to a gross margin quota, your number would be calculated by subtracting the cost of goods you sell from the overall revenue. A gross profit quota is calculated by subtracting selling expenses and the cost of goods sold from the final revenue number.
The math involved in this calculation is simple: Divide the goal by the actual. This gives you a percentage value that represents how much of the goal has been achieved. For instance, if your goal is to sell 100 widgets, and you sell 80, your percent of goal is 80 percent (80/100).
A sales quota is a target sales reps are set for a specific period (month, quarter, year). Sales quotas can be set in dollar figures or in the number of goods or services sold. This is why sales managers spend a lot of time setting realistic goals for their reps.
Next, divide your annual sales goal by the number of days you'll be open during the year to calculate a daily sales goal. So if your annual sales goal is $1,200,000, divide that number by the 254 days you'll be open to arrive at a daily sales goal of $4,724.41.
Setting quota too high Mark looks for 50-70 percent of sales organizations to be at or above quota. If you have less than 50 percent of people hitting quota, then you have a problem, Mark said. In fact, many sales organizations only hit 40 percent of quota (or less).
An import quota is a limit on the amount of imports that can be brought into a particular country. For example, the US may limit the number of Japanese car imports to 2 million per year. Quotas will reduce imports, and help domestic suppliers.
import quota. A governmental restriction on the quantities of a particular commodity that may be imported within a specific period of time, usually with the goal of protecting domestic producers of that commodity from foreign competition. (See tariff.)
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