1.       Imagine you are the financial analyst for a small business that manufactures eco-friendly water...

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Accounting

1.       Imagine you are the financial analyst for a small business that manufactures eco-friendly water bottles. The following financial information is available for the last quarter:
• Revenue: The company sold 5,000 water bottles at a price of $15 each.
• Cost of Goods Sold (COGS): Each water bottle costs $6 to produce (includes raw materials and direct labor).
• Fixed Costs: The company incurs $10,000 in monthly fixed costs for rent, salaries, and utilities. • Variable Costs: Additional packaging and shipping costs amount to $1 per bottle sold.
• Marketing Costs: The company spent $5,000 on a social media advertising campaign during the quarter.
 
Questions:
a.       Calculate the total revenue for the company
b.      Calculate the total profit or loss ?
c.       Discuss how changes in any cost element (e.g., reducing marketing spend or optimizing production costs) could impact profitability.

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