Below is a list of annual financial information for a hypothetical lemon juice start-up business.

Advertising	$3,000
Administrative salaries and wages	$5,000
Bank charges	$200
Charitable contributions	$100
Depreciation expense	$650
Insurance	$2,000
Interest expense (loans, credit cards, etc.)	$250
Maintenance contracts	$600
Office supplies	$310
Payroll taxes	$2,600
City & state taxes	$200
Permits and licenses	$70
Postage and delivery expense	$300
Rent expense	$8,000
Repairs (office equipment, etc.)	$500
Utilities (electricity, water sewage)	$3,000

Answer all the questions below.

Question 3a: Calculate the annual sales estimate based on the information above. Assume that the cost of goods sold (COGS) is 55% of the total annual sales volume of the business. Show your calculations below.

Calculations:

Annual sales estimate:

Question 3b: Given your answer above, what would be a reasonable price point for a glass of lemonade? Why is the price point reasonable (provide evidence for your support)? You can use external sources of information. (1-2 paragraphs) HINT: show many glasses of lemonade the business needs to sell in a day with your price point.