Accounting and Finance Principles

Presented by
Dr. Hossam Abbas
Lets Create Our Business!

Happiness
Lemonade
Lemonade Cup!
What do we need to make a lemonade cup?!
 Raw Material

= + Water

+ Lemon
+ Sugar
 Raw Material

=
150
ML
+ Water
1 Liter
+ Lemon
+ Sugar

0.5 $ 2$ 2$ 5$
1 Cup 10 Cups 10 Cups 50 Cups
 Raw Material

=
150
ML
+ Water
1 Liter
+ Lemon
+ Sugar

0.5 $ 2$ 3$ 10 $

10 Cups 10 Cups 20 Cups

1. 5 $ = 0. 5 $ + 0.2 $ + 0.3 $
+ 0.5 $

How much one Cup of lemonade will cost me?!

 Raw Material
How much one Cup of lemonade will cost me?!

= 1. 5 $ Cost Per Unit

(Variable Cost)
 Raw Material
How much one Cup of lemonade will cost me?!

+ = 2$ Cost Per Unit

(Variable Cost)
0. 5 $ 1. 5 $
 Variable Cost

= 2$ 5$ 3$

Cost Per Unit Price Per Unit Contribution Margin

Per Unit

(Variable Cost) 3$ / 5$ = 60%

 Labor
Monthly Payments

2,000 $ Month

Happiness
Lemonade
 Rentals
Monthly Payments

2,000 $ Month

Happiness
Lemonade Mall
Space 3,000 $ Month
Rental
 Monthly Payments
January February March April …etc

Monthly Payments 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $

(Fixed Costs)
Overheads
 Monthly Payments
January February March April …etc

Sales 0$ 1,000 $ 500,000 $ 1,000 $ ….

Monthly Payments 5,000 $ 5,000 $ 5,000 $ 5,000 $ ….
(Fixed Costs)
Overheads
 Monthly Payments
January February March April …etc

Sales 0$ 1,000 $ 500,000 $ 1,000 $ ….

COGS 0$ 400 $ 200,000 $ 400 $
Cost of Goods Sold

Monthly Payments 5,000 $ 5,000 $ 5,000 $ 5,000 $ ….

(Fixed Costs)
Overheads
 Monthly Payments
January February March April …etc

Sales 0$ 1,000 $ 500,000 $ 1,000 $ ….

COGS 0$ 400 $ 200,000 $ 400 $
Cost of Goods Sold

Gross Profit 0$ 600 $ 300,000 $ 600 $

Monthly Payments 5,000 $ 5,000 $ 5,000 $ 5,000 $ ….

(Fixed Costs)
Overheads
 THANK
YOU

Presented by
Dr. Hossam Abbas