BA216 LLC

Scenario 1 and 2 Summary

Income Statement Items Calculations

Item % of Scenario 1
Sales $ 600,000
Sales $ 600,000
Gross Profit sales 50.00%
Gross Profit $300,000
Sales commission expense net sales 2.00%
Sales commission expense $12,000
Payroll tax expense payroll 8.65%
Payroll tax expense $8,650
Employee benefit expense monthly per employee $ 400
Number of employees 3
Website/social media expense $ 24,000
Website/social media expense $24,000
Scenario 1 expense items are given in the table on the right.
 BA216 LLC
mary First Year Operating Budget
Scenario 1
Given Amounts
Scenario 1
Scenario 2 Sales Revenue $ 600,000
Increases by 100% Cost of Goods Sold $ 300,000
1,200,000
50.00% Operating expenses:
$600,000
10% of amount over Scenario 1 sales Salaries expense 100,000
$60,000
8.65% Sales commission expense 12,000$
$8,650
$ 500 Payroll tax expense $8,650
3 Employee benefits expense $1,200
Increases by 50% Advertising expense 9,000
$36,000 Event Expense 12,000
Website/Social Media expense 24,000
Professional services 12,000
Building Lease Expense 43,200
Depreciation expense, equipmen 6,000
Insurance expense 12,000
Supplies expense 18,000
Utilities Expense 12,000