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!!