Developing profit and return on investment

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Developing Profit and Return on Investment

Through hard work and careful saving, Hans and his family have152,000 to start a small business. The family estimates sales tocustomers will be about $4,500 per month during the first year. Onthe average, expected cost per month are budgeted as follows:

Wages for occasional labor $700

Rent on land and buildings $1,200

Supplies $75

Utilities $100

Advertising $300

Delivery costs $225

What is the projected monthly profit?

What is the expected annual on investment?

Reference no: EM13256792

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