Question: Need help with this question please, do not copy and paste what is answered to this problem on other Chegg questions, it is not the

Need help with this question please, do not copy and paste what is answered to this problem on other Chegg questions, it is not the answers I am looking for!! Please show work

PLEASE DO NOT GIVE ME THE ANSWERS OF $ 15912, $ 50000, $13978 (I have already submitted this question before and the person did not answer what I was asking, so please do not give those answers, it is completely different than what I am looking for)

1. What is the net income for only $100 of sales?

2. What would be the expected payout for Jim, Kevin, and Arlene based on only $100 of sales?

Anderson Inc., is a startup company that designs, manufactures, and distributes environment friendly iPhone covers. Pat, the CEO of Anderson, was selected to present at the Dragons Den TV show. Pat pitched the company at the show. She offered 10% equity stake in the company in return for $100,000 in investment.

Investors were impressed by the presentation and three of them made offers. Jim was willing to give $100,000 in return for 40% equity stake. Kevin offered to give $100,000 for 10% royalty on all sales and was willing to have no equity in return. Arlene offered to give $100,000 for 2% royalty on all sales and 10% equity stake.

Pat called you during the show and consulted you to figure out which one of the dragons offer was the most economical for the company. Since you had helped Pat with preparing financials for Anderson, you have access to the latest income statement of Anderson as shown below:

Need help with this question please, do not copy and paste what

1. What is the net income for only $100 of sales?

2. What would be the expected payout for each Jim, Kevin, and Arlene based on only $100 of sales?

Jim: $

Kevin: $

Arlene: $

(PLEASE DO NOT GIVE ME THE ANSWERS OF $ 15912, $ 50000, $13978, that is not what I am looking for, it should be a small number like $8.00, for example, based on only $100 of sales)

Anderson Inc. Income Statement 500000 Revenue Sales Expenses-Variable COGS Gross profit SG&A 274000 226000 Salaries Advertising Insurance Premiums Utilities Maintenance Accounting Services Office Supplies Miscellaneous 60000 48000 12000 2400 2000 2000 1000 6000 Total EBITDA Depreciation EBIT Interest EBIT Taxes EAT or NI 133400 92600 31400 61200 0 0 61200 21420 39780 Anderson Inc. Income Statement 500000 Revenue Sales Expenses-Variable COGS Gross profit SG&A 274000 226000 Salaries Advertising Insurance Premiums Utilities Maintenance Accounting Services Office Supplies Miscellaneous 60000 48000 12000 2400 2000 2000 1000 6000 Total EBITDA Depreciation EBIT Interest EBIT Taxes EAT or NI 133400 92600 31400 61200 0 0 61200 21420 39780

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