Omar and Janet decide to revise their budget for Rings and Things. What suggestions about labor costs would you make, if the goal is to improve the business's cash flow?

Omar and Janet should reduce the budget for labor

The diagram for Janet and Omar is attached

Explanation:

The labor budget for Janet and Omar is $1000, approximately 57 percent of their total cost. Labor costs are 62 percent of the total income earned. This indicates that Janet and Omar's labor budget is on the upper side.

As a rule of thumb, labor should range between 25 to 35 percent of the totals costs. Another school of thought suggests that labor should not exceed 30 percent of total revenue. For Janet and Omar to be profitable, they must revise their budget downwards. The ideal labor cost should be below $400.