Questions: March 5: Miriam pays a monthly start up loan of 10,000, 100 per month payable on the 4th day of the month COGS 100 Fixed Cost 10,000 Fixed Cost 100 Variable Cost 100

March 5: Miriam pays a monthly start up loan of 10,000, 100 per month payable on the 4th day of the month
COGS 100
Fixed Cost 10,000
Fixed Cost 100
Variable Cost 100

Transcript text: March 5: Miriam pays a monthly start up loan of $\$ 10,000, \$ 100$ per month payable on the $4^{\text {th }}$ day of the month COGS $\$ 100$ Fixed Cost $\$ 10,000$ Fixed Cost $\$ 100$ Variable Cost \$100

Solution

Solution Steps

To solve the given problem, we need to calculate the total costs and income for Miriam based on the provided information. We will sum up the fixed costs, variable costs, and commissions, and then compare them to the income to determine the net profit or loss.

Step 1: Calculate Total Fixed Costs

To find the total fixed costs, we sum up the fixed cost, additional fixed cost, and the monthly loan payment: \[ \text{Total Fixed Cost} = \$120 + \$100 + \$100 = \$320 \]

Step 2: Calculate Total Variable Costs

To find the total variable costs, we sum up the other variable cost, additional variable cost, and the cost of goods sold (COGS): \[ \text{Total Variable Cost} = \$120 + \$100 + \$100 = \$320 \]

Step 3: Calculate Total Income

The total income is given as: \[ \text{Total Income} = \$120 \]

Step 4: Calculate Net Profit or Loss

To find the net profit or loss, we subtract the total costs (fixed and variable) from the total income: \[ \text{Net Profit or Loss} = \text{Total Income} - (\text{Total Fixed Cost} + \text{Total Variable Cost}) \] \[ \text{Net Profit or Loss} = \$120 - (\$320 + \$320) = \$120 - \$640 = -\$520 \]