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
At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $753,000. Chan records its Bad Debts Expense for that estimate. On the follow

Errors An error is an error discovered in the current financial period but it relates to one or more previous financial periods. Such errors arise due to mathematical mistakes, m

Q. Explain about Fiduciary? Fiduciary - Person who is responsible for administration of property owned by others. Corporate management is a FIDUCIARY with respect to corporate

Omission to do something which a reasonable man, guided by those ordinary considerations that ordinarily regulate human affairs, would do or doing of something that a reasonable an

The following market data are available for interest rates and volatilities associated with standard maturities: Suppose you are holding a bond portfolio which invests in a

Financial Statement Analysis Group Project 2 ACCT3303 Spring 2013 Due Date: May 5 (by the end of the day) The specific purposes of this project are: 1. Apply to actual companies th

On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized bal

Effect of Resolution The consequences of the resolution to wind up are: 1) The company must cease to carry on its business except so far as is necessary for the beneficial win


For this question you will use the dataset "murder.xls", which includes: • rate = Murder rate per 100,000 • convictions = Number of convictions divided by number of murders • execu