MLM Entity.

Setting the Payout / Compensation:
The MLM entity is to set, per sale, income plan as following:
40% of profit margin of the unit.
In case, non-binary plan, the 40% is to be split as per level.

Monthly Supply Level:
Monthly Budgeted Expenses = salaries + rent + bills + payment of lease (if any) + insurance premium (if any)
Breakeven Level (in units) = Budgeted Expenses / 40% of profit margin of the unit
Target Profit (in units) = Breakeven level (To set economies of scale at optimum)
Monthly Supply Level (in units) = Breakeven level + Target profit (To get value of ‘Number of required units’)
Multi-unit lines:
“Add all the Profit margins to arrive on Total profit margin (as per sales book). Divide the Budgeted Expenses on the figure, equal to 40% of the Total profit margin.
The Monthly supply level obtained will be used to arrive on the Monthly supply level for each Unit type”