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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
The cost of sales is one of the fundamental metrics by which small business owners can gauge profit or loss. In the simplest of terms, subtracting the cost of your sales from the amount you receive from your sales will tell you how much money you make, or your gross profit in accounting terms.