History homework help

You plan to start a business that sells waterproof sun block with a unique formula that reduces the damage of UVA radiation 30 percent more effectively than similar products on the market.You expect to invest $50,000 in plant and equipment to begin the business. The targeted price of the sun block is $15 per bottle. You forecast that unit sales will total 1,590 bottles in the first month and will increase by 24 percent in each of the following months during the first year. You expect the cost of raw materials to be $3 per bottle. In addition, monthly gross wages and payroll are expected to be $13,000, rent is expected to be $3,000, and other expenses are expected to total $1,000. Advertising costs are estimated to be $35,000 in the first month, but to remain constant at $5,000 per month during the following eleven months. You do not have sufficient savings to cover the entire amount required to start your sun-block business. You are going to have to get external financing. A local banker whom you know has offered you a six-month loan of $20,000 at an APR of 12 percent. You will pay interest each month and repay the entire principal at the end of six months.Assume that instead of making a single up-front investment, you are going to finance the business by making monthly investments as cash is needed in the business. If the proceeds from the loan go directly into the business on the first day and are therefore available to pay for some of the capital expenditures, how much money do you need to pull out of your savings account every month to run the business and keep the cash balances positive? (Enter negative amounts using negative sign preceding the number, e.g. -45. Round answers to 0 decimal places, 5,275.)