Totals
Expense Forecast Fixed Variable (Computed)
Revenues $1,520,000
Cost of Sales $790,000 $790,000 $790,000
Gross Profit $730,000
Management $182,000 $154,700 $27,300 $182,000
Shop assistants $258,000 $154,800 $103,200 $258,000
Rent $19,640 $15,000 $4,640 $19,640
Utilities $34,800 $34,800 $34,800
Misc. expenses $24,500 $12,250 $12,250 $24,500
Total expenses $518,940
Net income $211,060
Impact of 5% Marketing Expense on Operating Profit and Managerial Bonuses
With Marketing
Expense (5% of
Without Marketing Expense Sales)
Operating Profit $94,000 $63,300
Managerial Bonuses $94,000 $63,300
Expense Forecast Fixed Variable (Computed)
Revenues $1,520,000
Cost of Sales $790,000 $790,000 $790,000
Gross Profit $730,000
Management $182,000 $154,700 $27,300 $182,000
Shop assistants $258,000 $154,800 $103,200 $258,000
Rent $19,640 $15,000 $4,640 $19,640
Utilities $34,800 $34,800 $34,800
Misc. expenses $24,500 $12,250 $12,250 $24,500
Total expenses $518,940
Net income $211,060
Impact of 5% Marketing Expense on Operating Profit and Managerial Bonuses
With Marketing
Expense (5% of
Without Marketing Expense Sales)
Operating Profit $94,000 $63,300
Managerial Bonuses $94,000 $63,300
