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LESSON 4: FINANCIALS

Tamara Rodriguez

How much will it cost you to make your particular product or conduct your service as well as the amount of profit you will make from your business?

Total Cost Equation:

2 Shea Butter Sticks X $5.00 = $10.00

1 Vanilla Oil = $5.00

1 Lavender Oil = $2.00

Total Cost = $17.00

Pricing:

 

Total Cost ($17.00) *1.25 = $21.25

 

Rene should price her body butter at $21.25

Profit:

 

$21.25 - Total Cost $17.00 = $4.25

 

Rene makes $4.25 off of each body butter

Example: 

Rene sells body butter, in order to make body butter she must buy: 

  • 2 Shea Butter Stick - $5.00

  • 1 Vanilla Oil - $5.00

  • 1 Lavender Oil - $2.00

Item: The materials needed to make your product or service occur 
Quantity: How much of that item you will need
Costs: The price of each item  quantity 

Write a breakdown of your total cost, pricing, and profit, per the example above:

Total cost: the sum of all cost required to create your product or service

Expense: the cost required for something; the money spent on something.

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