Question
-Assume that you are the managing partner of a startup, which is selling its SAAS applications online. The salaries cost 30.000 usd monthly and office
-Assume that you are the managing partner of a startup, which is selling its SAAS applications online. The salaries cost 30.000 usd monthly and office rent is 24.000 usd annually. You pay monthly 500 usd for electricity, 200 usd for other expenses and 1.000 usd for data storage. You have bought a car for your staff and you are paying 700 usd monthly for the lease of the car. You have a monthly revenue of 5.000 usd and for the next 2 years there is a 20% increase in revenues every month, if you spend 4.000 usd for advertisement monthly. If you don't make any advertisement, then your revenue increases 3% every month. Assume that, we are in January 2023
1. Would you spend 4.000 usd for advertisement or not?
2. Prepare a monthly cash flow statement for the next 2 years ?
3. In which month you will reach to the breakeven point ?
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