Option 3 Below is a list of annual financial information for a hypothetical lemon juice start-up business. $3,000 Advertising Administrative salaries and wages $5,000 Bank charges Charitable contributions Depreciation expense $200 $100 $650 $2,000 Insurance Interest expense (loans, credit cards, etc.) Maintenance contracts $250 $600 Office supplies Payroll taxes $310 $2,600 $200 City & state taxes Permits and licenses $70 Postage and delivery expense Rent expense Repairs (office equipment, etc.) Utilities (electricity, water sewage) $300 $8,000 $500 $3,000 Answer all the questions below. Question 1: 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: Question 1: 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 2: 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) Question 3: Given your answer to Question 2 above, how many glasses of lemonade does the business need to sell in a month? Is this number practical and achievable? Why or why not? (1-2 paragraphs) Question 4: Given your answer to Question 3 above, what would be a good strategy to ensure the survival and the success of this company? Explain with supporting evidence and logic. (2-3 paragraphs). BONUS QUESTION! You can gain up to an extra 1% out of final exam (final exam is worth 15% of your total grade) by answering this question. Note that this is not an option question," meaning that this is an additional question to the two options you have to choose from above. Question: Given what you have read and learned in class about faith and business, how do you envision your integration in a business setting? Make sure that you refer to the readings, guest speakers, discussion board, and/or conversations in class. Write in your own unique wording. Option 3 Below is a list of annual financial information for a hypothetical lemon juice start-up business. $3,000 Advertising Administrative salaries and wages $5,000 Bank charges Charitable contributions Depreciation expense $200 $100 $650 $2,000 Insurance Interest expense (loans, credit cards, etc.) Maintenance contracts $250 $600 Office supplies Payroll taxes $310 $2,600 $200 City & state taxes Permits and licenses $70 Postage and delivery expense Rent expense Repairs (office equipment, etc.) Utilities (electricity, water sewage) $300 $8,000 $500 $3,000 Answer all the questions below. Question 1: 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: Question 1: 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 2: 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) Question 3: Given your answer to Question 2 above, how many glasses of lemonade does the business need to sell in a month? Is this number practical and achievable? Why or why not? (1-2 paragraphs) Question 4: Given your answer to Question 3 above, what would be a good strategy to ensure the survival and the success of this company? Explain with supporting evidence and logic. (2-3 paragraphs). BONUS QUESTION! You can gain up to an extra 1% out of final exam (final exam is worth 15% of your total grade) by answering this question. Note that this is not an option question," meaning that this is an additional question to the two options you have to choose from above. Question: Given what you have read and learned in class about faith and business, how do you envision your integration in a business setting? Make sure that you refer to the readings, guest speakers, discussion board, and/or conversations in class. Write in your own unique wording
