PLZ HELP Ezra has set up a barber shop offering haircuts and shaves, and he is the only dedicated barber in the vicinity. He occupies a small shop that had closed down and is in a good location in the centre of the high street with plenty of footfall going past. Ezra did not have much capital to set up the business and was not able to redecorate the shop from the unfashionable colours used by the previous tenant. He has two employees who are busy most of the time.
In his first year of trading, Ezra forecast he would make £5000 profit, however to his delight he made £12,000.
(a) How Ezra should spend his profit from the first year?

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?