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Bow Darling is an eCommerce site that sells children's hair bows. The bows are handmade and sell for premium prices. The company is owned by
Bow Darling is an eCommerce site that sells children's hair bows. The bows are handmade and sell for premium prices. The company is owned by Marsha Darling, who started the business 8 years ago as a hobby. The COVID-19 pandemic has also hit Marsha's business hard. Although she sells online, the product must be made. All of her employees are at home under 'shelter in place' orders mandated by her state's governor. Marsha still has fixed costs to pay such as rent on the building where bows are manufactured and interest on a small business loan. She is now relying on her family to help supplement the furloughed workers. How many bows must be made in order to cover her rent and interest? Hint: set up a simple Income Statement on Excel similar to lecture and use a Goal Seek Analysis. A simple Income Statement layout is shown in the attached document. Price Per Unit: $21 Cost of Goods Sold (% of Revenue): 61% Interest Expense: $13,264 Rent: $2,772 Corporate Tax Rate: 28% Simple Income Statement Layout-1.docx
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