You are to assume the role of a small business development officer with City Majestic Financial, a non-profit organization that helps business owners with growth and development and offers support and information to potential business owners. A client has asked you for information regarding economics and entrepreneurship.
The client owns a business and has requested the following information topics:
- Types of economic systems and explanation of each
- The role of small business on the economy
The client has provided financials concerning the business. The client would like you to include the financials in your presentation when explaining business profit. The client would like you to calculate and explain the economics of one unit, create an income statement to show profit, and calculate the break-even point to generate a profit. You must also explain the effects of competition.
Financials:
- Selling Price per Unit: $18.00
- COGS: $10.31
- Number of Units Sold: 3,000 (one month)
- Variable Expenses: $30,930
- Fixed Operating Expenses: $3,460.05
- Taxes @ 15%: $2,941.49
