I am still worrying that there might some of you finding it’s difficult to find the NET PROFIT.
As I explained in the classroom, in the TASK 3; it is given that:
NET PROFIT = TOTAL SALES – TOTAL EXPENSES
I explained to you that you need to find NET PROFIT for EACH RECIPE.
Let say, you have CHOCOLATE CUPCAKES, so you need to find NET PROFIT FOR CHOCOLATE CUPCAKES. (This is only an example)
Below is the diagram of TOTAL EXPENSES of Chocolate Cupcakes for 1 month.
So, How to find TOTAL SALES & NET PROFIT?
To find TOTAL SALES, don’t just put a BIG ASSUMPTION on the amount. Here are the clues:
If you look on the diagram above, the TOTAL EXPENSES= $54.20 (This is the amount that you have spent on buying ingredients of 1 recipe FOR ONE MONTH)
Think LOGICALLY!! one month = 4 weeks. You approximately divide TOTAL EXPENSES, $54.20 by 4 weeks = $13.55 per week.
Let say in week 1, you sell your product (Chocolate Cupcake) in a BOX every MONDAY, WEDNESDAY, and SATURDAY. Below is the calculation:
1 box (consists of 2 cupcakes) costs $1.50. You sell 5 boxes per day.
- If 5 boxes were sold, you will get $7.50 per day.
- If only 3 boxes were sold, you will get $4.50 per day.
- IF you refer to the table above, it is actually calculated such as:
- MONDAY:5 boxes were sold X $1.50 = $7.50
- WEDNESDAY: 5 boxes were sold X $1.50 = $7.50
- SATURDAY: 5 boxes were sold X $1.50 = $7.50
**$7.50 + $7.50 + $7.50 = $22.50 for WEEK 1 (You also need to do estimation for the rest of the weeks)
NOW!! Total up the TOTAL SALES OF ALL WEEKS For Chocolate Cupcakes
Week 1 = $22.50
Week 2 = $18.00
Week 3 = $13.50
Week 4 = $22.50
You sum them up, =$76.50
FINALLY!! Finding the NET PROFIT For Chocolate Cupcakes
Formula is: “NET PROFIT = TOTAL SALES – TOTAL EXPENSES”
NET PROFIT ($22.30) = TOTAL SALES ($76.50) – TOTAL EXPENSES ($54.20)
***YOU NEED TO FIND NET PROFIT FOR EACH RECIPE***
Please do comment here if you still in doubt… Your comments are very much appreciated!!