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In 2019, Jordie started a new business and hired his friend Kari. The business model is a unique one, involving sales and installation of birdh
In 2019, Jordie started a new business and hired his friend Kari. The business model is a unique one, involving sales and installation of birdh ou ses. Kari builds birdh ou ses and sells them online (many customers chose to pick their purchases up at Kari's house rather than pay for shipping). Jordie focuses on installations. He visits customers' homes and helps them with choosing appropriate locations and installation Kari earns commission of $5 per birdh ou se sold. Each birdh ou se kit is purchased for $10, plus $5 shipping expense. Other monthly expenses are $300 for rent and utilities, and $200 for other materials such as painting supplies. A birdhouse sells for $25 and installation is an additional $25. However, customers can purchase each product/service in dividually. If customers want a birdh ou se shipped, a $10 shipping fee is added. On average, a shipment costs Jordie $7.50. In 2019, 325 birdhouses were sold and installed. 480 birdhouses were sold in dividually (half of these were shipped to customers). Finally, there were 40 in dividual installations, where Jordie helped customers with birdh ou ses purchased elsewhere. In 2020, Jordie expects in dividual sales of birdh ou ses to increase 20%, while the combined sales and individual installations will grow 10%. He plans to focus on online retail to continue this growth trend into the future. With advertising of $500 per month, Jordie believes that online sales can be boosted an additional 10% on 2020 projections. Type out Jordie's 2019 Income Statement. Correctly form at your work, putting dollar signs at the appropriate places and indicate which numbers should be double-underlined using a "DU" label. Also, analyze and comment on things Jordie has done well, things he could improve on, and things he should keep an eye on in 2020
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