Sal is starting a cupcake factory and walks learners through the cost and profit calculations necessary for any new business. He uses simple numbers for the start-up costs, overhead, product price, and cost per cupcake. Sal writes out...

Discusses factors that cause profits to fluctuate from year to year, e.g., having to retool a business every two years. Goes on to explain how to mitigate this through accounting for the depreciation of capital assets.