The economic of one unit sold is a way to examine a snapshot, or model, of your whole business. 2. Why is it important to know?
It is important to know so that one unit of the product or service a business sells.
3. Give your own example of a unit of sale in the following areas.
retail:One unit or item and example is a watch.
manufacturing: makes a tangible an example would be sneakers
service:One hour of service time or a standard block of time devoted to a task an example is one hour of lawn mowing service.
wholesale: A dozen of items, for example 12 watches.
4. What is a gross profit?
Gross profit is a price minus cost of goods sold. The business will earn everything it sells. what you earned gets deducted due to taxes, the more you make the less you earn.
5. Why is it important to know this?
It is important to know the gross profit because every entrepreneur needs to know how to pay themselves, to expand their business and to start other business.
6. What is COGS?
COGS is thought of as the cost selling one additional unit. 7. Why do we need to know this? We need to know this so that we know the cost of goods sold, and you can calculate the gross profit by subtracting the COGS from your revenue.
We have to know how much money they buy it for and how much they sell it for. 8. How can we use COGS? Give an example (not from the book)
We can use COGS by having fundraisers when supplies or equipment is needed.
9. Lets say you sell multiple items from your business. How do you find the EOU? Give an example where a company does this.
I would find the EOU by finding out the cost to make or produce a product. Then, I would compare this cost to the price being charged for the item. If the profit is positive, then I would consider the product profitable. An example of a company that does this is MACY's. They have to calculate the price of a shirt and the cost to print on it, then decide upon a price too sell the shirts for.
10. What are the different types of businesses? And how do they calculate their EOU?
The different types of business are manufacturing, wholesale, retail, and service. Retail businesses calculate their EOU by comparing the cost of supplying the product to the price of selling the product. Manufacturing businesses have to compare the cost of manufacturing to the cost of sale. Service businesses must compare the cost of any supplies needed and time to the amount charged per hour. Wholesale businesses calculate their EOU by comparing the cost of supplying bulk products to the amount charged to other companies.
11. Read the story about Janet from pg 22 -24…What did you learn from her experience?
Critical Thinking
1. If i started successful business i would spend my time expanding and increasing the size of my product that i manufacture. i would like to be paid on the wholesale in the field of business
2. My personal goals for the next five years is to get good grades in high school, finish high school and four years of football and baseball. I want to go to a four year college and graduate from college to make my parents happy. I want to start my own business and be very successful.
The economic of one unit sold is a way to examine a snapshot, or model, of your whole business.
2. Why is it important to know?
It is important to know so that one unit of the product or service a business sells.
3. Give your own example of a unit of sale in the following areas.
4. What is a gross profit?
Gross profit is a price minus cost of goods sold. The business will earn everything it sells. what you earned gets deducted due to taxes, the more you make the less you earn.
5. Why is it important to know this?
It is important to know the gross profit because every entrepreneur needs to know how to pay themselves, to expand their business and to start other business.
6. What is COGS?
COGS is thought of as the cost selling one additional unit.
7. Why do we need to know this?
We need to know this so that we know the cost of goods sold, and you can calculate the gross profit by subtracting the COGS from your revenue.
We have to know how much money they buy it for and how much they sell it for.
8. How can we use COGS? Give an example (not from the book)
We can use COGS by having fundraisers when supplies or equipment is needed.
9. Lets say you sell multiple items from your business. How do you find the EOU? Give an example where a company does this.
I would find the EOU by finding out the cost to make or produce a product. Then, I would compare this cost to the price being charged for the item. If the profit is positive, then I would consider the product profitable. An example of a company that does this is MACY's. They have to calculate the price of a shirt and the cost to print on it, then decide upon a price too sell the shirts for.
10. What are the different types of businesses? And how do they calculate their EOU?
The different types of business are manufacturing, wholesale, retail, and service. Retail businesses calculate their EOU by comparing the cost of supplying the product to the price of selling the product. Manufacturing businesses have to compare the cost of manufacturing to the cost of sale. Service businesses must compare the cost of any supplies needed and time to the amount charged per hour. Wholesale businesses calculate their EOU by comparing the cost of supplying bulk products to the amount charged to other companies.
11. Read the story about Janet from pg 22 -24…What did you learn from her experience?
Critical Thinking
1. If i started successful business i would spend my time expanding and increasing the size of my product that i manufacture. i would like to be paid on the wholesale in the field of business
2. My personal goals for the next five years is to get good grades in high school, finish high school and four years of football and baseball. I want to go to a four year college and graduate from college to make my parents happy. I want to start my own business and be very successful.