Question

How do you know you are making money (Alex and Lou)?

Answer 1

To know if you are making money, compare your income to your expenses and calculate your net income. Keep a record of your financial transactions to track your progress.

Step-by-step explanation:

In order to know if you are making money, you need to compare your income to your expenses. If your income is greater than your expenses, then you are making money. For example, if Alex earns $500 from a part-time job and spends $400 on expenses, they are making a profit of $100.

Lou can also determine if they are making money by calculating their net income. Net income is the total revenue minus the total expenses. If the net income is positive, then Lou is making money. For instance, if Lou's total revenue is $1000 and their total expenses are $800, their net income is $200.

Both Alex and Lou can also track their financial progress by keeping a record of their income and expenses. This can be done through a budget or a financial statement, which provides a summary of their financial transactions. By comparing their income and expenses over time, they can determine if they are consistently making money.

The complete question is: How do you know you are making money (Alex and Lou)? is:

Answer 2

To determine if you're making money in business, such as show production, you must evaluate the economic risk/reward balance by comparing potential revenue with costs. A positive margin indicates profitability. This principle also applies to personal finance, where income must exceed expenses for profit.

Step-by-step explanation:

To know whether you are making money in a business context such as producing a show, you need to evaluate the economic risk/reward balance.

This involves looking at the potential revenue (the money you can make) and comparing it to the costs involved in running the business endeavor, such as a theatre production.

If the costs are much greater than the potential revenue, or the figures are too close for comfort, it might not be prudent to proceed.

However, if there is a reasonable margin where revenue exceeds costs, then you might be making money.

This is a crucial conversation to have with the creative team and investors, ensuring everyone understands the economic realities of the venture.

In your daily life, when you look at your dresser and imagine seeing money, this is just a hopeful wish.

The real-life evaluation of making money requires examining your income sources and expenses to see if you are actually profitable.

In the business of show production, profit is determined by the difference between the earnings from ticket sales and the expenses incurred, much like producer Hal Luftig suggests.