Boston to open a pizza and sub shop. The store size is 1,200 square feet and it requires about $100 per square foot in renovation, fixtures and equipment (balance sheet item not an income statement item). The rent for the said location is $69,000 per year. Jerry is planning to be open 7 days a week 15 hours per day. Jerry projects the store sales per day to be $2,350 (7 days a week 52 weeks a year). In addition, Jerry is counting on having 3 employees at all time in the store at an average pay of $15.15 per hour. Jerry has contacted you to help him to determine the following on an annual basis Sales/Revenues $ COGS $ COGS % Gross Profits Gross margin% Variable Costs Contribution margin Contribution margin% Fixed Cost $ EBITDA $ Break Even point sales $ Jerry has supplied you with the following information: : Sales Categories % to total sales COGS% Anticipated pay date Pizza 60% 40% Monthly-In the middle of the month Subs 36% 40% Monthly-second week of the month Soda 5% 30% Monthly-At the end of the month Operating cost Per Month Per Year Anticipated pay date Rent Monthly-First week of the month Payroll Weekly-Once a week Benefits and Taxes 24% Weekly-Once a week Utilities 500 Monthly-In the middle of the month Telephone 200 Monthly-In the middle of the month Computer Maintenance 100 Monthly At the end of the month POS Expense 1,300 Monthly At the end of the month POS Lease 75 Monthly-In the middle of the month Vehicle Lease Monthly-First week of the month Vehicle Fuel 200 Weekly-Once a week Merchandise Supplies 3% Monthly-In the middle of the month Office Supplies 100 Monthly-In the middle of the month Professional fees 1.200 Monthly-In the middle of the month Insurance 2,500 Monthly-First week of the month Commission 2.5% Monthly-At the end of the month Marketing 25,000 Monthly-At the end of the month Credit Card Fees 2.9% Weekly-Once a week Miscellaneous 1,987 Monthly At the end of the month 330 *middle of the month is week 3 **end of the month is week 4 In addition Jerry has asked you to forecast the store's cash flow for 5 weeks average. The beginning cash is $6,000. Week 1 Week 2 Week 3 Week 4 Weeks Beginning cash Cash in Sales Total cash in Cash out Payables (Variable cost and Fixed cost) Pizza Subs Soda Credit card fees Merchandise Supplies Commission Rent Payroll Benefits and Taxes Utilities Telephone Computer Maintenance Computer Expense Computer Lease Vehicle Lease Vehicle Fuel Marketing office Supplies Professional fees Insurance Miscellaneous Total cash out Net Cash flow Boston to open a pizza and sub shop. The store size is 1,200 square feet and it requires about $100 per square foot in renovation, fixtures and equipment (balance sheet item not an income statement item). The rent for the said location is $69,000 per year. Jerry is planning to be open 7 days a week 15 hours per day. Jerry projects the store sales per day to be $2,350 (7 days a week 52 weeks a year). In addition, Jerry is counting on having 3 employees at all time in the store at an average pay of $15.15 per hour. Jerry has contacted you to help him to determine the following on an annual basis Sales/Revenues $ COGS $ COGS % Gross Profits Gross margin% Variable Costs Contribution margin Contribution margin% Fixed Cost $ EBITDA $ Break Even point sales $ Jerry has supplied you with the following information: : Sales Categories % to total sales COGS% Anticipated pay date Pizza 60% 40% Monthly-In the middle of the month Subs 36% 40% Monthly-second week of the month Soda 5% 30% Monthly-At the end of the month Operating cost Per Month Per Year Anticipated pay date Rent Monthly-First week of the month Payroll Weekly-Once a week Benefits and Taxes 24% Weekly-Once a week Utilities 500 Monthly-In the middle of the month Telephone 200 Monthly-In the middle of the month Computer Maintenance 100 Monthly At the end of the month POS Expense 1,300 Monthly At the end of the month POS Lease 75 Monthly-In the middle of the month Vehicle Lease Monthly-First week of the month Vehicle Fuel 200 Weekly-Once a week Merchandise Supplies 3% Monthly-In the middle of the month Office Supplies 100 Monthly-In the middle of the month Professional fees 1.200 Monthly-In the middle of the month Insurance 2,500 Monthly-First week of the month Commission 2.5% Monthly-At the end of the month Marketing 25,000 Monthly-At the end of the month Credit Card Fees 2.9% Weekly-Once a week Miscellaneous 1,987 Monthly At the end of the month 330 *middle of the month is week 3 **end of the month is week 4 In addition Jerry has asked you to forecast the store's cash flow for 5 weeks average. The beginning cash is $6,000. Week 1 Week 2 Week 3 Week 4 Weeks Beginning cash Cash in Sales Total cash in Cash out Payables (Variable cost and Fixed cost) Pizza Subs Soda Credit card fees Merchandise Supplies Commission Rent Payroll Benefits and Taxes Utilities Telephone Computer Maintenance Computer Expense Computer Lease Vehicle Lease Vehicle Fuel Marketing office Supplies Professional fees Insurance Miscellaneous Total cash out Net Cash flow
