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Create the profit model for Donuts to Go and Muffins to Go. Profit = Total revenue X num. of units Variable Expenses X num. of

Create the profit model for Donuts to Go and Muffins to Go.

Profit = Total revenue X num. of units Variable Expenses X num. of units Fixed Expenses

(what are the values for Total Revenue, Variable Expenses and Fixed Expenses?)

Assume that each customer will buy one donut(or muffin) and one cup of coffee.

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Time period Donuts to Go Revenue: Cup of Coffee Revenue: Donut Donut ingredients per donunt) paper products: napkins, plates etc Insurance $4.00 $3.50 $0.60 per donut month $200.00 Maintenance & Repairs to equipment Marketing & Promotion: Advertising Coffee Coffee cups Payroll: Wages (Owner/ Manager) Payroll: Wages (per Employees) Donut and Coffee equipment rent Professional Fees: Accounting Professional Fees: Legal Powdered and Liquid Beverages Rent Previous research expense for Donuts advancements Supplies: Office Utilities month month per cup per cup month month month month month $0.00 $50.00 $0.25 $0.10 $2,500.00 $1,000.00 $500.00 $50.00 $25.00 $0.00 $1,000.00 month month month $1,500.00 $25.00 | $200.00 Muffins to Go Time period $400 Revenue Cup of Coffee Revenue: Muffin Muffin ingredients (per muffin) paper products: napkins, plates etc Insurance $5.50 $1.20 per donut month $500.00 Maintenance & Repairs to equipment Marketing & Promotion: Advertising Coffee Coffee cups Payroll: Wages (Owner/ Manager) Payroll: Wages (per Employees) Muffin and Coffee equipment rent Professional Fees: Accounting Professional Fees: Legal Powdered and Liquid Beverages Rent Previous research expense for Muffin advancements Supplies: Office Utilities month month per cup per cup month month month month month $0.00 1 $250.00 $0.25 $0.10 $2,500.00 $1,000.00 $2,500.00 $50.00 $25.00 $0.00 $2,000.00 month month month $2,000.00 $25.00 $500.00

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