JAB CULTURES

A style for EVERY STORY

By: JANE MANDIDEWA(T00560866) AND

BARBARA UNUEROH(T00526469)

INTRODUCTION TO BUSINESS MNGT 1710

Thompson Rivers University

JUNE 17, 2016

Submitted to: PETER PIETRAMALA

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TABLE OF CONTENT

Executive Summary……………………………………………………………………………………..4

Business Name…………………………………………..…………………………………………………5

Description of Business

Form of Business Ownership

Ideal Customers……………………………………………………………………………………………6

What Makes Our Business Unique (Our Advantages)

Ethical Issues………………………………………………………………………………………………7

Code of Ethics

Social Responsibility…………………………………………………………………………………8

Mission Statement……………………………………………………………………………………9

Business Goals………………………………………………………………………………………………10

SWOT Analysis…………………………………………………………………………………………11

Raw Materials……………………………………………………………………………………………12

Leadership Philosophy…………………………………………………………………………………14

Job Description………………………………………………………………………………………………15

Job Specification…………………………………………………………………………………………16

Training Employees ……………………………………………………………………………………17

Compensation

Incentives ……………………………………………………………………………………………….18

Target Market……………………………………………………………………………………………19

Product Features and Benefits…………………………………………………………………..20

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Product Differentiation

Pricing

Place ……………………………………………………………………………………………………….21

Advertising

Promotion

Cost Of Doing Business……………………………………………………………………..22

Income Statement……………………………………………………………………………23

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Executive Summary

JAB Cultures is the name of our business and it is an abbreviation of Jane and Barbara. On the other hand, ‘culture’ basically describes the tastes in art and manners that are favored by a social group of people.

JAB Cultures is located on the first floor of Aberdeen mall. Aberdeen mall itself, is situated at 1320 West Trans-Canada Highway, Kamloops, BC V1S 1J2, Canada. Surrounding apparels include GAP Factory Store, West 49, Northern reflections and TIPTOP tailors. JAB is a new apparel store that will offer quality African wear in an assortment of different sizes and designs to accommodate all varying body structures, specifically for women between the age of 20 and 30.The material used is unique, namely Adire and Ankara.

Our ideal customer and focus is to attract women between the age of 20 and 35 who are earning a minimum wage rate of $14-$15/hour.

The product we offer is unique and outstanding because of its special types of clothing material used. These include, Adire and Ankara. JAB Cultures stands out because it is the only African apparel store on both the floor we are located on and the entire Aberdeen mall and the goods we offer are of high quality.

Jane graduated from Harvard University studying Fashion, Retail and Hospitality. She has 2 years’ experience previously working as a creative and artistic designer at Burlington Coat Factory and have good understanding of color, texture and fabric quality.

Barbara studied International Business at University of British Colombia and she has 3 years’ experience as a fashion designer at Canucks Halifax, a highly rated fashion industry. She also spent 2 years working with Coco Chanel the number one top fashion designer in the world.

Together we plan to satisfy our customers and even to attract more customers internationally, thereby creating a strong base of brand loyalty, competing with top ranked international African fashion apparels such as Kreyann. Our drive is to assist people from Africa who make these clothing materials and designs but their efforts are never appreciated. We can help them by buying our materials from them.

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BUSINESS NAME

JAB Cultures is derived from the business owners’ names. ‘JAB’ being the abbreviation of Jane and Barbara. On the other hand, ‘culture’ basically describes the tastes in art and manners that are favored by a social group of people, the Africans. The name does not inform the customers on what exactly is in the shop and hence we made an effort to include a suitable logo that symbolizes an African woman.

DECRIBTION OF BUSINESS

JAB is a new apparel store that will offer quality African wear in an assortment of different sizes and designs to accommodate all varying body structures, specifically for women aged between 20-30 years of age. Positioning JAB cultures as the best retail shop, holding this service in Kamloops stands to be our main motive.

FORM OF BUSINESS OWNERSHIP

The business is organized as a general partnership, where Jane and Barbara have agreed to the same terms and conditions to become partners. The reason we picked on this type of business as compared to the other business ownerships is because of the advantages it holds. These are listed below.

Advantages of a General Partnership:

Easy to establish. There is an increased ability to raise funds when there is more than one owner. Wider pool of knowledge, skills, and connections. Improved management.

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IDEAL CUSTOMER

As JAB Cultures, our focus is to attract women between the age of 20 and 30 who are earning a minimum wage rate of $14-$15 per hour.

WHAT MAKES OUR BUSINESS UNIQUE (OUR ADVANTAGES)

Special types of clothing material used. Specialized Authenticity Partner with our customers

Special types of clothing material used.Our buyers love that our African attire are handmade, customized to taste and are of high quality fiber and is unique.

Specialized.There are 15 other boutiques at Aberdeen mall but we stand to be the only boutique that sells African apparels. Our customers come to us for expertise they have not seen elsewhere. They could pay less elsewhere for the same goods but they know that with us, they will get exceptional content that beats the competitions.

Authenticity. We never take anyone for granted and we listen to our customers. We provide value in our products and service, and go above and beyond to make customers feel very special in their own way and are treated equally. Return to simple values such as face to face marketing, handshakes, and then we use modern day technology to stay in front of the competitors.

Partner With Our Customers.JAB Cultures stands out because we make our customers revenue sharing partners in our business. Our referral program pays our members a percentage of the earnings of the customers they refer to us. They earn money without even shopping and establish residual income for themselves.

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ETHICAL ISSUES

Code of Ethics Anti-Bribery Antitrust and fair competition Conflict of interest

Anti-BriberyNo bribes, kickbacks or other similar remuneration or consideration shall be given to any person or organization in order to attract or influence business activity. Employees shall avoid gifts, gratuities, fees, bonuses or excessive entertainment in order to attract or influence business activity.

Antitrust and Fair CompetitionJAB Cultures will conduct its business honestly and ethically. We will constantly improve the quality of our service, product and operations and will create a reputation for honesty, fairness, respect, responsibility, integrity, trust and sound business judgement. No illegal or unethical conduct on the employees or its partners. Jab cultures will not compromise its principles for short term advantage. The ethical performance of this company is the sum of the ethics of the men and women who work here. Thus, we are all expected to adhere to high standards of personal integrity.

Conflict Of InterestEmployees of the company must never permit their personal interest to conflict with the interest of the company. Employees must avoid using the company contact to advance their private business or personal interest at the expense of the company. Employees of Jab cultures will often come in contact with confidential or sensitive information and must take appropriate steps to ensure that such information is strictly safe guarded. This information could include operating results, marketing strategies, customer list, new investment and manufacturer cost. Violation of this code of ethic can result in discipline, including possible termination. The degree of discipline relates in parts to whether there was a voluntary disclosure of any ethical violation or whether or not the violator cooperated in any subsequent investigation. Good ethics is good business.

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SOCIAL RESPONSIBITY

Socially responsible companies are intentional about having a positive impact on the world around them. Whether the business is starting new or building the existing structures of a company. Therefore our boutique finds it important to ponder the impact on our employees, community, and the world. Below are some steps that will help us to create a socially responsible business:

1. Understand what is meant by "socially responsible." Corporate social responsibility (CSR) is about using each aspect of your company to

better the world around you. Though many rightly think of social responsibility in terms of the environment and global issues, there are many other aspects of being socially responsible.

2. Explore Environmentally-Friendly Options. Saving the earth is of utmost importance to many clients and employees. Our company

can practice social responsibility by reducing the carbon footprint. Share files electronically instead of printing them. We can do this through email,

creating a common server, or using a cloud-based document sharing program. This cuts back on the amount of paper our company uses.

3. Be Conscientious With Our Resources.  Consumers want to know that we are doing everything we can to be a responsible

steward of our resources. This means not breaking labor laws, buying supplies from fair trade companies and being held accountable in how we use our money.

4. Support Our Community.  Though it is important to consider our global impact, being a socially responsible

company also means looking at the impact we are having on our own community. Sponsor a fundraiser for a local nonprofit organization. They find it difficult to raise the

money they need to run their organizations. We help them by providing the funds they need to organize an appropriate fundraiser. For example, sponsor a local 5K Run/Walk.

We help by donating clothing to a local shelter. Encourage staff members to volunteer. We become active in our community by

mentoring, volunteering at a soup kitchen, cleaning up a local highway, or serving at local churches.

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5. Invest In Staff Members. We show our employees that they are important and valued members of our

organization. We find ways to show our staff that we care, like protecting their health and safety by offering reasonable health insurance, setting up regular health clinics, and maintaining proper safety laws to ensure that our employees and their loved ones are cared for.

Maximize performance of employees by encouraging them to maintain a work/life balance. Allowing staff members to take time off, spend time with family, and get appropriate rest will go a long way toward building company loyalty and goodwill.

Provide them with opportunities and funds to develop their skills, hence training them. Professional development and continuing education are important aspects of helping our employees.

Retrenchment in order to put a hold to the different losses. Retrenchment aims at cutting down on all expensive fields. Moreover, this gives the employers time to think over the bad investments and about the necessary steps that have to be taken in order to prevent other managerial fiascos.

External recruiting opens up opportunities to find experienced and qualified candidates and may also help develop a diverse team of employees. Hiring a skilled and experience external candidate may also reduce training costs and give the organization a competitive advantage. External recruitment also can provide new, innovative ideas for management strategies, creating a forward-thinking approach that stimulates both advancement and growth.

MISSION OF STATEMENTLifestyle merchandising is our business and our passion. The goal for our brand is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and inspiration for everything we do. Our mission has always been to transcend fashion, to build confidence, provide a vehicle for expression and to build a family of the world’s best fashion retail brands offering captivating customer experiences that drive long-term loyalty.

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BUSINESS GOALS

The Company is looking forward to doing the following listed below in the first year:

1. Provide customers with top notch personalized customer service in an atmosphere of hospitality.

2. Advertise and promote in areas that our target customer base will learn about our store.3. Continuously review our inventory and sales and adjust our inventory levels accordingly.4. To have a customer base of 1,000 by the end of the first operating year.

Ways we can successfully achieve this are listed below:

Offer A Free Newsletter

When we offer a free newsletter, we are informing our potential customers that we are

willing to provide free information from the start. Then we will provide good content in

order for the customers to know more about our business.

Increase Our Customer Base By Asking For Opinions

Before a web visitor leaves our website, we will request that they complete a short survey

related to our business. People are happy to express themselves and often enjoy telling us

about their online and offline experiences.

Keep Up And Maintain Excellent Customer Support And Service

Treat each customer with respect and take appropriate action. A happy customer is likely

to tell at least three friends about a positive experience and lead to increased sales.

Keep Our Website Content Fresh

Fresh and informative content is one of the main elements that pull in new visitors and

potential customers. Keep our content fresh by publishing a blog that reports the latest

business news.

Promote Your Business On Social Media Networks

There is no easier way to grow our customer base than providing value and then having

our customers promote our brand for us.

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5. To receive a 30% profit margin within the first year.

Looking at the long term achievements we are planning to achieve the following;

1. To achieve net profits of above every financial year. 2. To earn 70% market share and become the number one ethnic African store in Kamloops,

BC and achieve name recognition in the local community.

SWOT ANALYSIS.

STRENGTHS Personal experience Number of fashion partners

provide variety and competitive pricing.

Ease of locating store that stocks ‘favorite’ fashion items.

Updated with latest looks of your favorite fashion icons.

Affordable-regularity of deals

OPPORTUNITIES Rise of new mass markets abroad such

as UK. Online sales with the fashion industry

are predicted to continue to grow. Changing customer taste

THREATS Competitors adopting the business

idea. New entrants. Popularity of independent fashion

outlets increasing. Outside hackers and credit card

thieves who are looking to steal customer’s identity.

WEAKNESS Competing against brands with

established brand images. Lack of funding. No reputation yet. We haven’t

established ourselves as a reputable grower in the botanical market.

RAW MATERIAL AND SUPPLIES.

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Acetate Fibres .

This fibre has a similar look and quality to silk and is crease resistant. Acetate is good for evening wear, summer dresses and lining. Acetate is also blended with synthetic chemical or natural fibers.

Viscose Fibres.

Viscose and cotton have similar qualities. The product is cheap in production, it’s printable and durable and it can be coloured and is washable up to 60°. Viscose is normally used for dresses, lining, underwear and also furnishing fabric. Viscose is also blended with chemical or natural fibers.

Racks.

We need a variety of racks, particularly, two-way racks, they maximize floor space. Since our boutique-style clothing store is small, we need only a few slant-arm racks to draw buyers' attention to the clothing.

Slat wall

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These will help create space since they will be attached to the walls. They serve a purpose to display our different styles of apparels.

Manikin Attracts customers from all angles since they see exactly how the clothes would look like on them.

Hangers Help to keep the clothes straight and clean since they will not be lying around the floors.

LEADERSHIP PHILOSOPHY

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To be good leaders we must also be able to think long term. It is important not only to understand the position where the business is in the present moment, but also to know where it is going and how to get there. With the help of our staff and allowing them the opportunities to create goals and ideas,will help keep the store viable. A leader needs mental toughness to be able to see things as they are and follow through with the consequences. Leadership creates a certain separation from one’s peers. As leaders we need to understand that not everyone will agree with us, but it is necessary to make decisions based on the good of the store.While we need to listen to constructive feedback, we may also need to stand firm in the face of opposition. This is an area we feel all leaders struggle with. We feel through great communication, problem-solving and having an open door policy, this can be tackled.

“Dedication involves making the space to let young ideas take hold; every tree was once a seed and every company was once an idea.”(Zephyr Bloch-Jorgensen). Dedication means spending whatever time or energy is necessary to accomplish the task at hand. A leader inspires dedication by example, doing whatever it takes to complete the next step toward the vision. By allowing staff autonomy and room for growth we will only make our store stronger.Openness builds mutual respect and trust between leaders and followers, and it also keeps the team well supplied with new ideas that can further our vision. We need to be able to think outside the box, especially if we want our store to be unique and different from others. 

To be good leaders, we need to be a good listener. When people take the time to communicate their opinions to us, we must honor this and give them our undivided attention. Communication is also a very important step in becoming great leaders. If we cannot communicate well, staff will not understand what direction the business is going in. We also believe that people need to feel that their opinions matter and that we use it to help make final decisions.

The most valuable asset of being a leader is honesty and integrity. A leader must be honest with both the employees and the customers because no one would want to help an organization that is built on lies and deception. A leader must have the trust of followers and therefore must display integrity. Once a leader compromises his or her integrity, it is lost.People will feel safe to share ideas and problems and help solve for solutions. Becoming great leaders is a lifetime of work; it is not achievable overnight or in a year. Becoming a great leader means to foster these qualities and follow through with our vision. Being a leader means we are willing to make mistakes and learn from them. We are excited to venture into our new leadership role and hope we possess many of these qualities to train and shape our staffs.

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JOB DESCRIPTION

Accountant:

Our accountant will Provides financial information to management by researching and analyzing accounting data and preparing reports.

Responsibilities:

Prepares asset, liability, and capital account entries by compiling and analyzing account information.

Recommends financial actions by analyzing accounting options. Summarizes current financial status by collecting information; preparing balance sheet,

profit and loss statement, and other reports. Substantiates financial transactions by auditing documents. Maintains accounting controls by preparing and recommending policies and procedures. Secures financial information by completing data base backups.

CASHIER:

Our cashier is the face of JAB cultures as they are usually the first face the customer sees.We are looking for an accountable cashier to process all transactions accurately and efficiently in accordance with established policies and procedures. The successful candidate will play a fundamental role in achieving our customer satisfaction and revenue growth objectives. The cashier’s objective is to support management in achieving the company’s growth by maximizing sales and controlling expenses.

Responsibilities:

Greet customers as they enter in establishment. Balance cash registers at the end of the day. Participate in taking in taking store inventory counts according to guidelines. Perform other task as assigned. Scan goods and collect payments Issue receipt, refunds, change or tickets.

SALES ASSOCIATES

The successful candidate will be able to elevate company standards, achieve sales goals and meet customer’s expectations.

RESPONSIBILITIES

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Actively seek out customers in store Build productive trust relationship with customers Remain knowledgeable on products offered and discuss available options. Assess customers’ needs and provide assistance and information on product features. Ensure high levels of customer satisfaction through excellent sales service Team up with co-workers to ensure proper customer service

JOB SPECIFICATION.

Accountants:

Holder of a university degree or equivalent. CPA will be an added advantage Should be competent in the use of software e.g. accounting packages Should be computer literate Must have at least 2years experience in related field.

CASHIER

Proven working experience in retail, cashier or sales. Basic PC knowledge and familiarity with electronic equipment (e.g. cash register,

scanners, money counters etc.) Strong communication and time management skills. Attention to detail and mathematical skills. High school degree.

SALES ASSOCIATES:

Proven working experience as sales associate. Basic understanding of sales principles and customer service practices Proficiency in English. Working knowledge of customer and market dynamics and requirements. Track record of over-achieving sales quota. Solid communication and interpersonal skills. Customer service focus. High school degree; BS degree in Marketing or related field would be a plus.

TRAINING EMPLOYEES

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We offer one week on the job training for all our employees. We have an existing hire training program in place for our new hires. During the training at JAB Cultures, our accountant,cashier and Sales Associate will learn the secrets to successful store operations, how to provide unparalleled service experiences and develop the confidence to handle any customer situation.

JAB Culture train Retail Sales Associates become experts at all aspects of retailing — from professionalism to customer service, sales, inventory, and store appearance. This can result in significant increases in sales, exceptionally satisfied and loyal customers, and a solid foundation for our retail career.

Training includes the following modules:

Professionalism. Provide Personalized Customer Service. Monitor Inventory. Maintain Appearance of Department/Store. Protect Company Assets.

The training will give them suggestive selling techniques, merchandising tips, and the best ways to maximize a customer's shopping experience.

COMPENSTAION

They are many situations in which we will face when deciding what to pay an employee. Like, market conditions and experience. It takes a carefully crafted balance between the organizational needs and the individual to arrive at the optimal compensation structure. Our compensation will be based on experience but for now we came to a conclusion of $1540(month) and the employee will get a raise over time based on hard work and efficiency,

INCENTIVES

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Pay increases: We have a fixed regular payment made to an employee in exchange for performance of their duties and responsibilities of their role. We give our employees a pay increase of 5% at the end of every 6months. There are various reasons and methods for determining an increase, but our common factor is that the increase changes the level of ongoing base pay.

A promotional increase We offer our employees a promotion to a position that is evaluated at a higher grade level than the position to which they will be currently assigned to. Any employee who is being promoted will receive a promotional increase at the time of the promotion, taking into consideration performance, qualifications, and market information.

A merit increase We offer an award of merit increase to recognize an employee’s contribution and to compensate them for their high level of performance.An employee’s performance will be the key factor in awarding a merit increase and can be the factor that moves a person through the salary scale towards the midpoint or higher. Merit increases will be awarded to an employee’s anniversary date following a formal performance review.

Bonus payments Bonus pay is compensation over and above the amount of pay specified as wages or salary and it is only distributed as the business is able to pay or as outlined in an employment contract. We will use this to improve employee’s morale, motivation, and productivity or as a thank you to employees who achieve a significant goal. We will make the bonus pay discretionary, therefore it will not be considered to be a contract.

TARGET MARKET.

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The primary JAB Culture customer is a professional woman with a household income of over $25,000. Her main characteristics are listed below:

Demographics

Professional woman (ages 20-35) Household income over $25,000 College-educated Spends over $1,500 for clothes each year.

Psychographics

Looks for bargains (seasonal fashion) but willing to spend money on quality core items. Would like more time or help in understanding what clothing is right for her. She wants to look her best because she wants to feel good about herself as well as make a

good impression at her job and community.

Behavioral:

Supports the Arts Reads Vogue, New Africa women, Afrik Fashion, Opra. Watches African magic, Channels, CNN. Travels, owns a passport, car. She enjoys eating out as well as taking time for herself at the spa or getting a mani-pedi. She cares about how she presents herself, enjoys fashion, and looks for quality over

quantity.

Geographic:

She lives in Kamloops, Canada. Likes the summer weather.

PRODUCT FEATURES AND BENEFITS

Features Benefits

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Affordable prices Long lasting Private label/brands Cultural design

Confidence that this product will be high quality.

Different material used for different occasions.

PRODUCT DIFFERENTIATION

We are the first of this kind in Kamloops and our product will stand out for itself as we will offer a wide range of African fabric. We hope to distinguish our brand by remaining original and unique to our goal which is to sell our clothing..

Customization-by making our designs stand out and customize to an individual/customers taste.

Unique material fibre.

PROMOTION

Some ways we can promote our product are listed below:

Since our product is protruded as a new culture, we intend to create a unique brand for our product though social media.

We intend to create public relations through TRU international students so that they can showcase our African culture.

Networking, creating brand ambassadors and even using mediums like flyers and posters will help for our initial kick off.

We will consider seasonal promotions that will usually be for the summer to encourage patronage.

PRICING

Our product will be priced using the penetration strategy. This is to enable us grow our market share as fast as possible. In adapting this strategy we hope to bench mark existing substitutes or alternative by matching similar product with lower pricing.

Below are some of the reasons we choose penetration strategy:

This strategy will encourage repeat purchase and increase turnover. This strategy will enable us to manage competitors and make it difficult for new entrant.

PLACE

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JAB Cultures is located on the first floor of Aberdeen mall. Aberdeen mall itself, is situated at 1320 West Trans-Canada Highway, Kamloops, BC V1S 1J2, Canada. Surrounding apparels include GAP Factory Store, West 49, NORTHEN REFLECTIONS and TIPTOP tailors. The exact location is presented below by the blue circle as indicated,

ADVERTISING

Social media will be our main form of advertising and we intend to exploit mediums such as Facebook, Instagram, Twitter and Snapchat. To target our market, this advertising platform has been chosen to reach our target market which is women of the ages between 20 and 35.

We chose this form of advertising because:

It is less expensive. It is more direct as an average person can access the social media/internet.

COST BREAKDOWN

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CAPITAL 60 000

Rent (2500/month)…..covers 3 months 7500

Materials:Acetate fibres (150 pieces)Viscose fibres (200 pieces)Racks (5 sets)Manikin (2 sets)Hangers (500 hangers)Ankra fibres (100 pieces)Slat wall (3 sets)EXTRA COSTS FOR SHIPPING FROM USA:Customs dutyBreakage and damageShipping cost

7500100002501402005000190

190010701100

Salary and Wages (1540 each/month)….covers 3 months) 23100

Computers (3 monitors) 1600

Insurance 450 60 000

NB: Prices of the apparels will be ranging from $25 to $80 depending on the type of material and design.

JAB CULTURES INCOME STATEMENT(YEAR ENDING 30/09/2017)REVENUE         2016

Sales Revenue   88500

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(Less sales returns)Damaged goods  6500

TOTAL REVENUES   82000EXPENSES        

Advertising   1100Bad debt   800Commissions   420Cost of goods sold   3111Deprecation   1132Employee Benefits   5000Insurance   1800Interest expense   1882Maintenance and repair   900Office supplies   1102Payroll taxes   510Rent   30000Research and Development 2200Salaries and wages   18480Software   480Utilities   320TOTAL EXPENSES   69237

   Net income Before Tax   19263Income tax expense   3772

   NET INCOME   15491

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