First, we will build a basic financial model. As we$$ve previously discussed, a model has assumptions, inputs,

calculations, and outputs. Open the template file. Notice that the upper left portion of your workbook has room for

different assumptions. Fill out the assumptions $($yellow$-$filled cells$)$ using the information given below. These yellow$-$

filled cells should be the only $$hard coded$$ or $$hard wired$$ numbers in your spreadsheet. All remaining values

throughout the spreadsheet should be calculated using a formula.

$$ The daily $$parking space fee$$ for the space you will occupy downtown is $$5,000$ per day.

$$ You will buy your beef from a local rancher. The current price per pound of beef is $$6.$

$$ You will buy your buns from a local baker. The current price per dozen buns is $$4.$

$$ You will supply your own toppings $($lettuce$,$ tomato, pickles, ketchup, mustard, etc.$)$ and have calculated the

average cost of toppings per burger sold as $$1.$

$$ The number of burgers you anticipate selling per day varies a bit, but you believe it will average around $1,800$

per day.

$$ You plan to charge a flat fee per burger $$7.$

$$ You will need to pay taxes of $20\%$ on before$-$tax profits.

Below your assumptions, calculate the cost per unit for each burger sold $($there is a designated space for this in cells

B$13$:B$16).$ Think about this critically.

$$ With quarter pound burgers, how much does the beef for one burger cost? Use a formula to calculate the

beef cost per burger.

$$ With buns by the dozen $($dozen $=12),$ how much does an individual bun cost? Use a formula to calculate the

bun cost per burger.

Goal $2$ Build a basic income statement $($also known as: $$profit & loss statement$$ or $$P&L$)$

Now, create a basic income statement for one day of operations. Remember the profit formula provided above.

$1.$ Calculate revenues

$2.$ Calculate your variable expenses

$3.$ Calculate your fixed expenses

$4.$ Calculate your before$-$tax profit

$5.$ Calculate your after$-$tax profit