Developing Profit and Return on Investment Through hard work and careful saving, Hans and his family have $152,000 to start a small specialty foods business. The family estimates sales to customers will be about $4,500 per month during the first year. On the average, expected costs per month are budgeted as follows:
|
Wages for occasional labor |
$700 |
Utilities |
$100 |
|
Rent on land and buildings |
1,200 |
Advertising |
300 |
|
Supplies |
75 |
Delivery costs |
225 |
Required
A. What is the projected monthly profit?
B. What is the expected annual return on investment?