Question: Research a bagel store and set up an Excel Spreadsheet Model/Graph showing C-V-P curves, similar to what's shown in the attached document, and answer the
Research a bagel store and set up an Excel Spreadsheet Model/Graph showing C-V-P curves, similar to what's shown in the attached document, and answer the specific questions below based on that model.
Assignment:
a. What's your unit of measuring business volume; why did you choose that
b. What are the firms total estimated fixed costs/month
c. What are the firm's estimated variable cost/unit
d. What's the firm's breakeven point in unitsand in sales $
e. What is meant by a firm's contribution margin %...and its contribution margin $/unit
f. Below the breakeven point, what does each $ of contribution margin go toward
g. Above the breakeven point, what does each $ of contribution margin go toward
h. Include both a data chart and graph showing revenue, VC, FC, and profit curves
| volume | TVC | FC | Total cost | Revenue | profit | VC/u | $2 |
| 0 | 0 | 4000 | 4000 | 0 | -4000 | SP/u | $5 |
| 1000 | 2000 | 4000 | 6000 | 5000 | -1000 | FC/mo | 4000 |
| 2000 | 4000 | 4000 | 8000 | 10000 | 2000 | ||
| 3000 | 6000 | 4000 | 10000 | 15000 | 5000 | ||
| 4000 | 8000 | 4000 | 12000 | 20000 | 8000 | ||
| 5000 | 10000 | 4000 | 14000 | 25000 | 11000 |
|
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