Answer:
$475,500
Explanation:
Sales is $1,000The discountscount is $2500
Sales return and allowances are $15,000
The cost of goods sold is $525,000
Therefore the gross profit can be calculated as follows
= 1,000,000-2,500-15,000-525,000
= 457,500
Hence the gross profit is $475,500
Math appendix! Hope I helped!!
PART I
Answer:
The business idea is that of a Bakery that specializes in pastry that is mixed with fruits.
Explanation:
SWOT
Strengths
- Unique Value Proposition which is healthier bread and cake recipes
- 20 years experience in baking which translates to strong industry knowledge
Weaknesses
- Insufficient Equipment to go with
- Weak or zero visibility for new business
Opportunities
- Little or no competition as the recipes are unique to me
- Huge demand for healthier pastry especially in my current location
Threats
- The industry is heavily regulated and may be shut down if there are compliance issues
- One competition that knows what they are doing and combines pastry with healthy drinks such as smoothies. We don't do smoothies.
Part II
Answer:
The persons I would give the business plan to are:
- An angel investor who I met on LinkedIn who supports small businesses and start-ups
- My banker of over 20 years
- I would give the business plan to my family members because they are the easiest people to raise funds from and also because family, can decide to contribute in cash or in-kind with no interest required.
- I would give the business plan to an angel investor because their funds are cheaper than those of the banks though a little more difficult to come by
- Banks always have the funds but the funds come at a higher cost than the first two.
Cheers
Answer:
The correct answer is letter "A": Account A.
Explanation:
Compound interest is the interest an investor earns on the original investment plus all the interest earned on the interest that has accumulated over time. It is also called <em>interested on interested</em>. The frequency of compounding could be scheduled from daily to annually. The more frequent the compound interest is set, the most beneficial it is for the investor.
In that sense, account A will provide Julian with the highest annual return since it gives him a compound interest on a monthly basis v. annually with account B.
