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?