Imagine you own an organic t-shirt company. Your t-shirts are made with 100% organic cotton from...

 

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Imagine you own an organic t-shirt company. Your t-shirts are made with 100% organic cotton from Peru. Last month your revenue was $29,000. Your cost of goods sold was $2,000. You have two full-time employees who each make $5,100 a month and a part time employee who earns $2,100. In addition, last month you paid $1,800 in advertising, $100 in insurance, $500 for utilities, and allocated $450 in depreciation. Here are some formulas to help: Revenue - Cost of Goods Sold = Gross Profit • Salaries + Utilities + Advertising + Insurance + Depreciation = Total Operating Expenses • Gross Profit - Total Operating Expenses = Net Profit Please calculate the company's gross profit, total operating expenses and net profit (show how you calculated this). Then write a 50-150 word essay answering the following question: Did the company do well last month from a financial perspective? Why or why not? If someone else wants to buy the company, what other information may they want to see and why? Imagine you own an organic t-shirt company. Your t-shirts are made with 100% organic cotton from Peru. Last month your revenue was $29,000. Your cost of goods sold was $2,000. You have two full-time employees who each make $5,100 a month and a part time employee who earns $2,100. In addition, last month you paid $1,800 in advertising, $100 in insurance, $500 for utilities, and allocated $450 in depreciation. Here are some formulas to help: Revenue - Cost of Goods Sold = Gross Profit • Salaries + Utilities + Advertising + Insurance + Depreciation = Total Operating Expenses • Gross Profit - Total Operating Expenses = Net Profit Please calculate the company's gross profit, total operating expenses and net profit (show how you calculated this). Then write a 50-150 word essay answering the following question: Did the company do well last month from a financial perspective? Why or why not? If someone else wants to buy the company, what other information may they want to see and why?

Answer rating: 100% (QA)

To calculate the companys gross profit we need to subtract the cost of goods sold from revenue Therefore the gross profit for last month was 29000 200... View the full answer