Ally’s Net Profit = ; Kat’s Commission = Question 18 options: 1) Ally’s Net Profit = $13,575; Kat’s Commission = $3,600 2) Ally’s Net Profit = $10,185; Kat’s Commission = $4,800 3) Ally’s Net Profit = $7,815; Kat’s Commission = $5,760 4) Ally’s Net Profit = $9,815; Kat’s Commission = $6,760
Ally’s friend, Kat, is going to start selling cookies for her at local events. Ally is going to give her 40% of the gross profit for each dozen she sells as a commission. The investment and fixed costs have changed but the variable cost for each dozen cookies has not. Since the cookies are so popular they are raising the price to $15 per dozen.
Ally’s costs are:
Initial investment: $450
Fixed costs: $375
Variable costs: $3 (per dozen)
Ally expects Kat to sell 100 dozen cookies at each event. What is Ally’s projected NET profit after ALL expenses including her initial investment for the first twelve events Kat attends and how much will Kat make in commissions?
Ally’s Net Profit = ; Kat’s Commission =
Question 18 options:
1)
Ally’s Net Profit = $13,575; Kat’s Commission = $3,600
2)
Ally’s Net Profit = $10,185; Kat’s Commission = $4,800
3)
Ally’s Net Profit = $7,815; Kat’s Commission = $5,760
4)
Ally’s Net Profit = $9,815; Kat’s Commission = $6,760
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