Question: Break-even analysis Projected sales for the first year Start up summary (cash requirements / start up expenses) Projected profit and loss for the first year

Break-even analysis

Projected sales for the first year

Start up summary (cash requirements / start up expenses)

Projected profit and loss for the first year (each month)

Provide a profit/loss (income) statement

Costs must be based on your research. They must be realistic.

Pro-forma cash flow statement for the first year

Monthly Revenue Break-even

$31,232.90

Daily 30.42 days

135.27 units

Daily Revenue

$1,026.72

Assumption Per-Unit Revenue (espresso + sandwich)

$8.75

Average Per-Unit Variable Cost (espresso + sandwich

$1.16

Estimated Monthly Fixed Cost

$31,232.86

Create a balance sheet

and an income statement
Sales Forecast
January February March April May June July August September October November December
Unit Sales
Coffee 7000.00 7560.00 8164.80 8817.98 9523.42 10285.30 11108.12 11996.77 12956.51 13993.03 15112.47 16321.47
Espresso 100.00 108.00 116.64 125.97 136.05 146.93 158.69 171.38 185.09 199.90 215.89 233.16
Latte 100.00 108.00 116.64 125.97 136.05 146.93 158.69 171.38 185.09 199.90 215.89 233.16
Sandwiches 200.00 216.00 233.28 251.94 272.10 293.87 317.37 342.76 370.19 399.80 431.78 466.33
Total Unit of Sales 7400.00 7992.00 8631.36 9321.87 10067.62 10873.03 11742.87 12682.30 13696.88 14792.63 15976.04 17254.13
Coffee 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Espresso 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Latte 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16
Sandwiches 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Total Variable Cost Prices per Unit 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76 2.76
Coffee 700.00 756.00 816.48 881.80 952.34 1028.53 1110.81 1199.68 1295.65 1399.30 1511.25 1632.15
Espresso 150.00 162.00 174.96 188.96 204.07 220.40 238.03 257.07 277.64 299.85 323.84 349.75
Latte 16.00 17.28 18.66 20.16 21.77 23.51 25.39 27.42 29.61 31.98 34.54 37.31
Sandwiches 200.00 216.00 233.28 251.94 272.10 293.87 317.37 342.76 370.19 399.80 431.78 466.33
Total Variable Cost Sales 1066.00 1151.28 1243.38 1342.85 1450.28 1566.30 1691.61 1826.94 1973.09 2130.94 2301.41 2485.53
Coffee 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45 2.45
Espresso 4.45 4.45 4.45 4.45 4.45 4.45 4.45 4.45 4.45 4.45 4.45 4.45
Latte 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15
Sandwiches 4.25 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15
Total Sale Price per Unit 15.30 15.20 15.20 15.20 15.20 15.20 15.20 15.20 15.20 15.20 15.20 15.20
Coffee 17150.00 18522.00 20003.76 21604.06 23332.39 25198.98 27214.89 29392.09 31743.45 34282.93 37025.56 39987.61
Espresso 445.00 480.60 519.05 560.57 605.42 653.85 706.16 762.65 823.66 889.56 960.72 1037.58
Latte 415.00 448.20 484.06 522.78 564.60 609.77 658.55 711.24 768.14 829.59 895.95 967.63
Sandwiches 850.00 896.40 968.11 1045.56 1129.21 1219.54 1317.11 1422.47 1536.27 1659.17 1791.91 1935.26
Total Sales 18860.00 20347.20 21974.98 23732.97 25631.61 27682.14 29896.71 32288.45 34871.53 37661.25 40674.15 43928.08
Profit and Loss
Sales 18860.00 20347.20 21974.98 23732.97 25631.61 27682.14 29896.71 32288.45 34871.53 37661.25 40674.15 43928.08
Direct Costs of Sales 1066.00 1151.28 1243.38 1342.85 1450.28 1566.30 1691.61 1826.94 1973.09 2130.94 2301.41 2485.53
Total Cost of Sales 1066.00 1151.28 1243.38 1342.85 1450.28 1566.30 1691.61 1826.94 1973.09 2130.94 2301.41 2485.53
Gross Margin 17794.00 19195.92 20731.59 22390.12 24181.33 26115.84 28205.10 30461.51 32898.43 35530.31 38372.73 41442.55
Gross Margin % 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94
Payroll 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08 12898.08
Marketing/Promotion 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000
Depreciation 4050 4050 4050 4050 4050 4050 4050 4050 4050 4050 4050 4050
Rent 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78 7124.78
Utilities 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
Insurance 710 710 710 710 710 710 710 710 710 710 710 710
Total Operating Expence 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86 35282.86
Cash sales 18860.00 20347.20 21974.98 23732.97 25631.61 27682.14 29896.71 32288.45 34871.53 37661.25 40674.15 43928.08
Balance Sheet
Cash 200000
Inventory
Total Current Assets
Long Term Asset
Equipment 40500
Total Assets
Liability
Equity
Capital
Retained Earnings
Income Statement
Income
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses
Selling General and Administrative 53581.56
Non Recurring 28,124.78
Depreciation Expense 4050 (40500/10)
Total Expenses
Net Profit

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