Please answer the following questions:

1. Is the cost of sales worth keeping the lines open? Discuss the profit or loss this is causing and what recommendations you would make.
2. Review all of the figures are the total calculations correct ? Identify any errors you can locate
3. Has the increased cost in advertising had any impact on profit? Give details:
4. Review the operating expenses and outline figures that have altered and in what way
5. Overall, what is your opinion on the Net Profit/Loss final figures for the organisation. Answer this in your own words.

Profit and Loss - Cairns Sales Casual Attendance Memberships Equipment and Clothing Total Sales Direct Cost of Sales Equipment and Clothing Total Cost of Sales Gross Margin Gross Margin % Operating Expenses Advertising Bank Service Charges Credit Card Fees Insurances Miscellaneous bouncefitness Year 20X1 Cairns 53,100 241,000 29,000 $ 323,100 8,700 $ 8,700 $ 314,400 97% 117,000 6,000 3,000 12,000 2,400 Year 20X2 53,100 241,000 29,000 $ 323,435 8,874 $ 8,874 $ 314,561 97% 134,550 6,000 3,003 12,000 2,402 Head Office Contribution Payroll Team Building Professional Fees Rent or Lease Subscription & Dues Supplies Taxes & Licenses Utilities and Telephone Equipment Leases Maintenance Total Operating Expenses Profit before Interest and Taxes (EBIT) Interest Corporate Taxes Net Profit (or Net Income) 195,000 15,500 20,000 48,000 3,000 30,000 2,400 9,500 12,000 11,800 $ 487,600 $ (173,200) $ (173,200) 204,750 17,050 20,000 48,000 3,000 28,500 2,400 9,975 12.000 11,800 $ 515,431 $ (200,870) $ (200,870)