A. = = 21 T AaBCcDdEe ABCcDdEe AaBbCcDc Aa Bbc Heading 1 Heading Normal No Spacing Break Even Analysis: For this part of the assignment, we are going to try to predict when your business will break even Just as in the Startup Expenses and Opening Day Balance Sheet assignment, you will have to make financial estimates. That is not surprising. Most of time business people need to do this regularly. The difference between a "good" business person and a "not so good" business person often comes down to how accurate they are with their estimates. In this part of your assignment, you will have to estimate the average monthly income per custom and the Marginal Costs per sale (this was covered in class during session 9). STEP 1: What is my average monthly income per customer? What I want you to do is think about how much you income you would expect to make from one customer (an average customer) each month. Perhaps you will bill each customer monthly (like a nursing home does). Maybe you will bill each customer every time you see them (like a dentis office does). It doesn't matter. Let's fill in one of the two following options: Choose 1 of these 2 options - place a mark in the box for the option you choose: I bill my customers monthly. I expect to receive on average $ (enter the amount) from each of my customers in a month's time. The amount you entered is the average monthly income per customer. -or- I bill my customers every time I provide a service or sell them my goods. I expect to receive on average $ (enter the amount) every time I see a customer. I also expect to see this one customer this many times a month: (enter the number of times you expect to see a customer per month If you bill this way, multiple the average $ that you entered by the number of times you expect to see that customer in a month. This then will give you your average monthly income per customer. number of times = $ Averages monthly income per customer) (this is the average Fo A. = = 21 T AaBCcDdEe ABCcDdEe AaBbCcDc Aa Bbc Heading 1 Heading Normal No Spacing Break Even Analysis: For this part of the assignment, we are going to try to predict when your business will break even Just as in the Startup Expenses and Opening Day Balance Sheet assignment, you will have to make financial estimates. That is not surprising. Most of time business people need to do this regularly. The difference between a "good" business person and a "not so good" business person often comes down to how accurate they are with their estimates. In this part of your assignment, you will have to estimate the average monthly income per custom and the Marginal Costs per sale (this was covered in class during session 9). STEP 1: What is my average monthly income per customer? What I want you to do is think about how much you income you would expect to make from one customer (an average customer) each month. Perhaps you will bill each customer monthly (like a nursing home does). Maybe you will bill each customer every time you see them (like a dentis office does). It doesn't matter. Let's fill in one of the two following options: Choose 1 of these 2 options - place a mark in the box for the option you choose: I bill my customers monthly. I expect to receive on average $ (enter the amount) from each of my customers in a month's time. The amount you entered is the average monthly income per customer. -or- I bill my customers every time I provide a service or sell them my goods. I expect to receive on average $ (enter the amount) every time I see a customer. I also expect to see this one customer this many times a month: (enter the number of times you expect to see a customer per month If you bill this way, multiple the average $ that you entered by the number of times you expect to see that customer in a month. This then will give you your average monthly income per customer. number of times = $ Averages monthly income per customer) (this is the average Fo
