Question
1. Define the fixed and one time fixed start up costs in this case. 2. What will be the cost for the very first customer,
1. Define the fixed and one time fixed start up costs in this case.
2. What will be the cost for the very first customer, or the cost per customer/per visit)?
3. What is the contribution margin per customer (hint: figure out the revenue per customer first)?
4. How many customer visits will CIC need in order for the cafe to break even in the first year? Should he proceed with this business?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
17th Edition
1119613698, 978-1119613695
