Benefits of sell some goods at a local music festival, Financial Accounting

1. You have decided to sell some goods at a local music festival. You have hired a sales stand for $500. Your cost per item is $3 and you will sell each item for $5. When you did your initial calculations, you expect to sell 300 items and have purchased 500 just to be sure. You can return any un-sold items to the supplier and get your $3 back.

(a) What benefits do you expect?

(b) What costs did you expect?

(c) Suppose that due to rain the prospects look bad and you now only expect to sell 200 items. At this point you have already paid the $500 for the stand, but you can decide not to sell if you want. Would you prefer to not sell now?

(d) What other costs might you have that have not been expressed here? Would they perhaps change your answer to (c)?

Posted Date: 4/1/2013 3:15:47 AM | Location : United States







Related Discussions:- Benefits of sell some goods at a local music festival, Assignment Help, Ask Question on Benefits of sell some goods at a local music festival, Get Answer, Expert's Help, Benefits of sell some goods at a local music festival Discussions

Write discussion on Benefits of sell some goods at a local music festival
Your posts are moderated
Related Questions
Related Party Transaction - Business or other transaction between persons who don't have an arm's-length relationship (for example a relationship with independent, competing intere

What is accounting? Accounting is concerned with analysing, collecting as well as communicating financial information. Purpose is to help people who use this info to make more

Limited Liability Company (LLC) - Form of doing business combining limited liability for all owners (known as members) with taxation as a PARTNERSHIP. An LLC is formed by filing AR

Berg Company adopted a stock-option plan on November 30, 2013, that provided that 73,200 shares of $5 par value stock be designated as available for the granting of options to offi

Illustration of Head office records In order to provide a check that branch managers and staff deal properly with goods and cash passing through their hands, goods are normally

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

Ask questiJohn’s away at the moment, and his email provider has a size limit on the data that can be sent via email. What is a potential solution for John, and name a provider that

PC Bank has $100,000 in fixed rate loans paying an annual interest rate of 10 percent, payable semiannually. PC Bank also has $100,000 in certificates of deposit. Their depositor

how to solve the question income statements

Manik Enterprises spent $10,000 to purchase farming equipment 5 years ago. This equipment is presently valued at $2,000 on today's balance sheet but could actually be sold for $4,5