You run a small manufacturing shop which produces fishing rods. Below are some facts relating to...

 

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You run a small manufacturing shop which produces fishing rods. Below are some facts relating to your operation: • The business produced and sold 3,000 fishing rods for the year. • The sales price was $50.00 for each fishing rod. • The business was billed and it paid $20.00 per fishing rod for material and labor to build the fishing rods. • The business was billed and it paid $25,000 in rent for the building where you assemble the fishing rods. .The business borrowed $100,000 from the bank. The bank billed the business and it paid interest at 6% a year. • The business also borrowed $300,000 from you the owner of the business. You did not bill the business for any interest on the loan. The owner could have earned 5% interest for the year had you invested it somewhere else. • The owner was not paid a salary from the business. The owner could have earned $80,000 had you worked for someone else. Question: What was the total revenue for your business? You run a small manufacturing shop which produces fishing rods. Below are some facts relating to your operation: • The business produced and sold 3,000 fishing rods for the year. • The sales price was $50.00 for each fishing rod. • The business was billed and it paid $20.00 per fishing rod for material and labor to build the fishing rods. • The business was billed and it paid $25,000 in rent for the building where you assemble the fishing rods. .The business borrowed $100,000 from the bank. The bank billed the business and it paid interest at 6% a year. • The business also borrowed $300,000 from you the owner of the business. You did not bill the business for any interest on the loan. The owner could have earned 5% interest for the year had you invested it somewhere else. • The owner was not paid a salary from the business. The owner could have earned $80,000 had you worked for someone else. Question: What was the total revenue for your business?

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