ANSWER

Background Information Started in January 2020, Bored Games is finishing its first year in business. Sole proprietor Richard Hall is an MBA grad with an extensive background in management, production, and finance. Bored Games specializes in the development, manufacture, and distribution of business related board games. BoredGames signature board game is NO CASH 4 U. It allows players to compete in a fantasy business world with real money to become a premier business tycoon while obliterating all the competition. BoredGames first year (2020) data, to date and anticipated, are as follows: Number of games sold 10,000 Price per Game $35.00 General Manager Salary $60,000 per year Advertising Expense $5,000 per year Facility Lease $25,000 per year Labor to Manufacture $5.00 per unit Materials to Manufacture $2.00 per unit As 2020 draws to a close, Rich Hall wants the business to grow in 2021. If current sales generate a profit, increased sales or reduced costs will help to increase profit and market share. Rich Hall wants his business to keep pace with the Game Industry average yearly market growth of 10%. New to the market, BoredGames is not well-known and relies on traditional media advertising and word of mouth to increase consumer awareness. Rich Hall's staff is efficient and well-trained, but the order processing system is antiquated resulting in slow deliveries. Although sold nationally, NO CASH 4 U is a specialized board game that is distributed only through preferred outlets. Based in Oswego, New York, BoredGames has five other independently owned competitors in the national specialized game market. They are: Company 2020 Sales Ante Up $971,000 Try Again $748,000 More or Less $690,000 Seize the Day $592,000 Buy or Sell $333,000 Internal Situation 1. Using data found in the Background Information, please calculate the following 2020 financials showing equations and all work: A. Total Revenue (2 pts) 10,000 x 35 = 350,000 B. Total Fixed Costs (2 pts) C. Total Variable costs (2 pts) D. Total Costs (2 pts) E. Profit (Loss) (2 pts)