Question
New Economics of One Unit (End of Year 1) One Unit of Sale = 5-Dinner Plan Selling Price (per Unit) $ 350 Variable Costs 264
New Economics of One Unit (End of Year 1) One Unit of Sale = 5-Dinner Plan Selling Price (per Unit) $ 350 Variable Costs 264 Contribution Margin $ 86 Evas Edibles Annual Income Statement: Year 1 March 31, 20-- REVENUE Sales (186 Days Cooking; 56 @ $325/Plan, 130 @ $350/Plan) $ 62,400 Total Revenue $ 62,400 COST OF SERVICES SOLD Materials (Groceries @ $110/Plan) $ 20,460 Labor (@ $150/Plan) 27,900 Cost of Services Sold 48,360 GROSS PROFIT $ 14,040 OPERATING EXPENSES Advertising $ 2,550 Depreciation 200 Insurance 1,400 Telephone 1,200 Other Operating Expenses (Auto-Related) 2,100 Other Operating Expenses (Cooking-Related) 1,900 Total Expenses 9,350 PRE-TAX PROFIT $ 4,690 Taxes (15%) 704 NET PROFIT $ 3,986
1. Comparing/Contrasting. Prepare a comparative balance sheet for Evas Edibles, using her projected income statement (p. 203). How did Eva do in her rst year?
2. Analyzing Information. How do the ROS and ROI after the rst year compare to those in her projected business plan (pg. 203).
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