(Optional) Project business income and expenses.

Projection should include

• anticipated sales of the product or service
• the cost of the product or service
• the cost of promotional activities
• operating expenses (e.g., taxes, insurance, labor, regulatory costs, licenses)
• other variable costs
• other fixed costs.

Process/Skill Questions:

• What business actions affect profit?
• What is the difference between fixed expenses and variable expenses?
• When developing a budget, how can you estimate variable expenses?
• Why should a business establish a financial plan?
• What financial statements are vital to the development of a financial plan?
• How does seasonality of a product or service affect income?