What would be the total income from selling baked goods

Reference no: EM133371083

Question: Summary of baked items sold monthly is mentioned below:

Item      Sales volume   Sale price
Cookies- 100             $7
Cupcakes- 100             $6
Muffins-    80               $8
Other       N/A              $600 (monthly total)

Janny has projected monthly fixed costs of $600 when she starts her business (these are currently incurred as living expenses, though at lower rates such as the depreciation of the baking oven). There will also be approximate variable expenses equal 40% of the sale price for each baked good (including others).

Currently, Janny is projecting a growth rate of 4% per month, compounding monthly for the first 24 months. This will be followed by annual growth of 7% per year for the next three years (the business will be considered mature with no further development).

What would be the total income from selling baked goods for first 05 years (include basis of calculation)

Reference no: EM133371083

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