All listed costs relate to the large size Snowie.

Ice per Snowie

$0.20

Spoon straw (need one per Snowie)

$0.02

Styrofoam cup (need one per Snowie)

$0.08

Napkin per sheet (need two per Snowie)

$0.01

Servings per gallon of syrup

28

Cost per gallon of syrup (includes concentrate, preservative, and sugar)

$4.25

Hourly rate for workers

$10.00*

Event registration fee per day

$25.00*

Electricity, insurance, maintenance, and permit costs per month

$250.00*

Kiosk rental cost per month

$650.00*

Purchase cost of two ice shavers (5-year life)

$3,180.00

Purchase cost of a flavor station (5-year life)

$1,080.00

Now assume the Snowie supplier increases the cost of a gallon of the Snowie syrup to US$8.00 (from its original cost of US$4.25) you increase the selling price of a large Snowie to US$5.00.

1. Make the following assumptions
2. Number of days you anticipate opening the Snowie
3. kiosk per month _______
4. Number of hours you will work (no wages required)
5. per day ________
6. Number of hours you will pay an employee to work in
7. the Snowie kiosk per day _____
8. How many Snowies you estimate you will sell on an
9. average day ______
10. create budgeted contribution margin income statement for one month
11. What other factors should you consider before deciding to start a Snowie business?