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Six months have gone by and Frank is doing pretty well....he thinks...but when he is asked if he is making any money, he has to stop and consider? We are going to make some assumptions and help him determine whether or not there is a profit.
Question 1: Have started the discussion with some assumptions about how Frank has done from a sales and cost perspective.
Question 2: Then all of you will brainstorm together with focus on answering "Did Frank turn a profit after the first six months of business?"
Hint: Consider what costs are to be taken into account in relation to these sales. Once the framework of revenues/expenses is established, explore how to track this performance on an ongoing basis.
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