Do the Proforma on Microsoft Excel for the provided alternatives:

Embracing a Partnership with Skip The Dishes:

Implementing Strategic Staffing and Shift Management:

Introducing a Hybrid Operation and Strengthened Online Presence:

Permanently Shutting Down and Selling the Downtown Location:

Implementing a Strategy for Staff Reduction:

use this worksheet as the basis for your forecasts for each alternative that you consider.

Monthly Budget $2020$

Location $1$ Location $2$ New Location Total Company Common Size Annual

Revenues $$35,000$ $$36,000$ $$40,000$ $$111,000100\%$ $$1,332,000$

COGS $22\%7,7007,9208,80024,42022\%293,040$

Gross Profit $27,30028,08031,20086,58078\%1,038,960$

$-$

Rent $2,5003,0006,00011,50010\%138,000$

Staff wages & benefits $21,33221,33217,88160,54655\%726,549$

Utilities $2002002006001\%7,200$

Cleaning $1,0001,000-2,0002\%24,000$

Other Expenses $1,5001,5001,0004,0004\%48,000$

Total Expenses $26,53227,03225,08178,64671\%943,749$

$-$

Operating Profit $7681,0486,1197,9347\%95,211$

$-$

Corporate Expenses $-$

Insurance & Other $6001\%7,200$

Advertising & Promotion $3000\%3,600$

Owners salaries & benefits $5,0005\%60,000$

Earnings before Interest & Tax $($EBIT$)2,0342\%24,411$

Interest Expense $1,0001\%12,000$

Earnings before tax $$1,0341\%$ $$12,411$

Staffing Costs:

Weekly opening hours $808060$

# staff at all times $333$

wage per hour $$17$ $$17$ $$19$

cpp etc $1\mathrm{.}151\mathrm{.}151\mathrm{.}15$

benefits $1\mathrm{.}051\mathrm{.}051\mathrm{.}05$

weeks $/$ mo $4\mathrm{.}334\mathrm{.}334\mathrm{.}33$

Total $21,33221,33217,881$

This is the budget that the Company drew up in late $2019.$

Monthly Budget $2020$

Location $1$ Location $2$ New Location Total Company Common Size AnnualRevenues $$35,000$ $$36,000$ $$40,00$ $$111,000100\%$ $$1,332,000$

COGS $22\%7,7007,9208,80024,42022\%293,040$

Gross Profit $27,30028,08031,20086,58078\%1,038,960$

$-$

Rent $2,5003,0006,00011,50010\%138,000$

Staff wages & benefits $21,33221,33217,88160,54655\%726,549$

Utilities $2002002006001\%7,200$

Cleaning $1,0001,000-2,0002\%24,000$

Other Expenses $1,5001,5001,0004,0004\%48,000$

Total Expenses $26,53227,03225,08178,64671\%943,749$

$-$

Operating Profit $7681,0486,1197,9347\%95,211$

$-$

Corporate Expenses $-$

Insurance & Other $6001\%7,200$

Advertising & Promotion $3000\%3,600$

Owners salaries & benefits $5,0005\%60,000$

Earnings before Interest & Tax $($EBIT$)2,0342\%24,411$

Interest Expense $1,0001\%12,000$

Earnings before tax $$1,0341\%$ $$12,411$

Staffing Costs:

Weekly opening hours $808060$

# staff at all times $333$

wage per hour $$17$ $$17$ $$19$

cpp etc $1\mathrm{.}151\mathrm{.}151\mathrm{.}15$ Note: CPP and EI are $15\%$ of wages payable by employer.

benefits $1\mathrm{.}051\mathrm{.}051\mathrm{.}05$ Benefits are $5\%$ of wages paid by employer.

weeks $/$ mo $4\mathrm{.}334\mathrm{.}334\mathrm{.}33$

Total $21,33221,33217,881$