Projected monthly profit;expected annual return
The Smith family has saved for many years, and they have decided to start a hardware business with $250,000. They estimate that sales about $6000 per month during the first year. On average, the budgeted monthly costs will will be:
Wages for labor: $900
Rent on store building: $1500
Utilities: $300
Advertising: $500
Delivery costs: $400
a. Evaluate the projected monthly profit?
b. Find the expected annual return on investment?