Gross Sales $81,900 × B selling price units sold Sales Returns $0 x C selling price units returned Net Sales $81.900 D B C – VARIABLE EXPENSES Costs of Goods Sold Materials $25,200 × E cost of materials units sold Labor $37,800 × F cost of labor units sold Total Cost of Goods Sold $63,000 + G E F Other Variable Expenses Commission $0 × H cost of commission units sold Packaging $0 × I cost of packaging units sold Other $1,008 × J cost of other costs units sold Total Other Variable Expenses $1,008 + + K H I J Total Variable Expenses $64,008 + L G L CONTRIBUTION MARGIN $17,892 M D L – FIXED OPERATING EXPENSES Insurance $1,404 × N cost of insurance 12 months Salaries $0 × O cost of salaries 12 months Advertising $1,752 × P cost of advertising 12 months Interest $0 × Q cost of interest 12 months Depreciation $276 × R cost of depreciation 12 months Utilities $1,200 × S cost of utilities 12 months Rent $0 × T cost of rent 12 months Other fixed expenses $1,284 × U cost of other 12 months Total Expenses $5,916 + + + + + + + V N O P Q R S T U PRE-TAX PROFIT $11,976 W M V – Taxes (15%) $1,796.40 × 0.15 X W NET PROFIT $10,179.60 Y W X – 3.7 Startup Investment Item Why Needed Vendor Cost Victorinox Swiss Army Needed to chop vegetables $618.00 Macy’s Cutlery Set (8 Piece) and tri meat
B Gross Sales selling price × units sold $81,900 C Sales Returns selling price x units returned $0 D Net Sales B – C $81.900 VARIABLE EXPENSES Costs of Goods Sold E Materials cost of materials × units sold $25,200 F Labor cost of labor × units sold $37,800 G Total Cost of Goods Sold E + F $63,000 Other Variable Expenses H Commission cost of commission × units sold $0 I Packaging cost of packaging × units sold $0 J Other cost of other costs × units sold $1,008 K Total Other Variable Expenses H + I + J $1,008 L Total Variable Expenses G + L $64,008 M CONTRIBUTION MARGIN D – L $17,892 FIXED OPERATING EXPENSES N Insurance cost of insurance × 12 months $1,404 O Salaries cost of salaries × 12 months $0 P Advertising cost of advertising × 12 months $1,752 Q Interest cost of interest × 12 months $0 R Depreciation cost of depreciation × 12 months $276 S Utilities cost of utilities × 12 months $1,200 T Rent cost of rent × 12 months $0 U Other fixed expenses cost of other × 12 months $1,284 V Total Expenses N + O + P + Q + R + S + T + U $5,916 W PRE-TAX PROFIT M – V $11,976 X Taxes (15%) W × 0.15 $1,796.40 Y NET PROFIT W – X $10,179.60 3.7 Startup Investment Item Why Needed Vendor Cost Victorinox Swiss Army Cutlery Set (8 Piece) Needed to chop vegetables and tri meat Macy’s $618.00