Prepare a flexible budget for 1 month showing the expected profit/loss from this online business.

Assumptions

Assuming the maximum number of clicks each day is 100, and that each advertisement click costs $0.30.

Assuming one customer is convinced to purchase the cake after every 15 clicks.

30% of each order is what Grab charges the business as a commission.

Per serving of cake for online delivery option

	Price ($)
Fees for Marketing	$0.15 ((0.30*15)/30)
Fees for Platform	$12 (40*0.3)
Price of handling consumer complaints	$1.33 (40/30)
Total costs	$14.48

The proposed Selling Price is $40/cake and the expected sales volume per month is $5,600 (140 x $40)

Assuming that the business does well. Please prepare a flexible budget for 1 month showing the expected profit/loss from this online business.

Assumption both the oven and refrigerator is 4 years old We assume there is no labour cost required as family members will be helping for free if assistance is required