Originally Posted by
ladygaga1978
filochick1982, please read this so you can understand what is happening. You can make a Sweet Tea for $1,000, and when you bake the dish it says "Profit: $1,500". If you deduct $1,000 for the cost of baking from the total, even after you have sold ALL of your Sweet Tea dishes you will only make $500. With that $500 you do not have enough to cook another Sweet Tea for $1,000. If you sell a product, you have to think about how much you spent, how much it will cost to buy more stock, and how much you're actually earning (which does not include the money that keeps the business running). If you're breaking even that's not a business, that's a waste of time. Your theory of cashflow confused with profit is wrong because even if you sold ALL of your Sweet Tea dishes you would still be $500 short of being able to afford cooking a Sweet Tea again. Yes, you made $500, but that's not enough to bake another Sweet Tea, let alone anything else on the menu to cook! Does that make sense to you?