VI. FINANCIAL ASPECT a. Total Project Cost When starting our food business, our initial step was to strategize and introduce innovations, along with allocating a budget for procuring all necessary ingredients and supplies for food production. It is essential to acquire low-cost products of high quality to reduce expenses while maintaining the standard of mouthwatering food. After acquiring all necessary production materials, it is essential to assess the adequacy of your workforce for creating high-quality products. If additional labor is required, consider hiring more employees. Calculate your overhead expenses to determine the total costs incurred, including selling and administrative expenses. Understanding all expenses will help you ascertain whether your business simulation resulted in a net income or loss by comparing it to earned revenue. CupEat Est. 2024 Ayeesha Amanoddin. Xyza Binuar. Shielą Daproza, Keion Gecosala, Tish Gonzales, Erynn Gunsi. Maajid Kundo. Prince Mandaragon, Xandrea Qntox. Sharifkasnur Sampulna, Alfiya Şapal. Amir Sinsuat, and Bianca Tumaxao Total Project Cost Particulars Direct Materials Direct Labor Overhead Expenses Selling and Administrative Expenses Total b. Income Statement Amount Php 3,389.22 Php 0.00 Php 1,280.00 Php 0.00 Php 1,280.00 First, let's understand the given data. Gross sales are the total sales revenue, which is Php 10,800. Direct materials cost is Php 3,389.22, direct labor cost is Php 0.00 (which means no labor cost is involved), and overhead expenses are Php 1,280.00. These three costs combined give the total manufacturing cost, which is Php 4,669.22. Subtracting the total manufacturing cost from the gross sales gives the gross profit, which is Php 6,130.00. This is the profit made from the business operations before deducting any selling and administrative expenses. In this case, the selling and administrative expenses are Php 0.00, which means there are no additional costs to be deducted from the gross profit. Finally, the net profit is calculated by subtracting the selling and administrative expenses from the gross profit. In this case, the net profit is Php 5,517.00. Based on these calculations, the business is projected to have a net income, not a net loss. This is because the gross sales are higher than the total manufacturing cost, resulting in a positive gross profit. Furthermore, there are no selling and administrative expenses to be deducted from the gross profit, leading to a positive net profit. As for whether the business will gain more profit, it depends on various factors such as market conditions, competition, and the company's ability to control costs and increase sales. However, based on the current financial data, the business is in a profitable position. Based on the given financial data, the projected business plan indicates a net income of Php 5.517.00, not a net loss. This is due to the gross sales being higher than the total manufacturing cost, and there being no selling and administrative expenses. Whether the business will gain more profit depends on various factors, but currently, it is in a profitable position.

VI. FINANCIAL ASPECT a. Total Project Cost When starting our food business, our initial step was to strategize and introduce innovations, along with allocating a budget for procuring all necessary ingredients and supplies for food production. It is essential to acquire low-cost products of high quality to reduce expenses while maintaining the standard of mouthwatering food. After acquiring all necessary production materials, it is essential to assess the adequacy of your workforce for creating high-quality products. If additional labor is required, consider hiring more employees. Calculate your overhead expenses to determine the total costs incurred, including selling and administrative expenses. Understanding all expenses will help you ascertain whether your business simulation resulted in a net income or loss by comparing it to earned revenue. CupEat Est. 2024 Ayeesha Amanoddin. Xyza Binuar. Shielą Daproza, Keion Gecosala, Tish Gonzales, Erynn Gunsi. Maajid Kundo. Prince Mandaragon, Xandrea Qntox. Sharifkasnur Sampulna, Alfiya Şapal. Amir Sinsuat, and Bianca Tumaxao Total Project Cost Particulars Direct Materials Direct Labor Overhead Expenses Selling and Administrative Expenses Total b. Income Statement Amount Php 3,389.22 Php 0.00 Php 1,280.00 Php 0.00 Php 1,280.00 First, let's understand the given data. Gross sales are the total sales revenue, which is Php 10,800. Direct materials cost is Php 3,389.22, direct labor cost is Php 0.00 (which means no labor cost is involved), and overhead expenses are Php 1,280.00. These three costs combined give the total manufacturing cost, which is Php 4,669.22. Subtracting the total manufacturing cost from the gross sales gives the gross profit, which is Php 6,130.00. This is the profit made from the business operations before deducting any selling and administrative expenses. In this case, the selling and administrative expenses are Php 0.00, which means there are no additional costs to be deducted from the gross profit. Finally, the net profit is calculated by subtracting the selling and administrative expenses from the gross profit. In this case, the net profit is Php 5,517.00. Based on these calculations, the business is projected to have a net income, not a net loss. This is because the gross sales are higher than the total manufacturing cost, resulting in a positive gross profit. Furthermore, there are no selling and administrative expenses to be deducted from the gross profit, leading to a positive net profit. As for whether the business will gain more profit, it depends on various factors such as market conditions, competition, and the company's ability to control costs and increase sales. However, based on the current financial data, the business is in a profitable position. Based on the given financial data, the projected business plan indicates a net income of Php 5.517.00, not a net loss. This is due to the gross sales being higher than the total manufacturing cost, and there being no selling and administrative expenses. Whether the business will gain more profit depends on various factors, but currently, it is in a profitable position.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

CupEat Est. 2024
Ayeesha Amanoddin, Xyza Biruar, Shiela Daproza, Keion Gecosala, Tish Gonzales, Erynn Gunsi, Maajid Kundo, Prince Mandaragon, Xandrea Ontoy, Sharifkasnur Sampulna, Alfiya Sapal, Amir Sinsuat, and Bianca Tumayao
Projected Income Statement
Particulars	Amount
Gross Sales	Php 10,800
Less:
Direct Materials	Php 3,389.22
Direct Labor	Php. 0.00
Overhead Expenses	Php 1,280.00
Total Manufacturing Cost	Php 4669.22
Gross Profit	Php 6,130.00
Less: Selling and Administrative Expense	Php 0.00
Net Profit	Php 5517.00