Format Painter Clipboard Alignment Font H12 G C D E B GENERAL INSTRUCTIONS: You are considering opening up a coffee shop. It will be a straightforward place that sells various brews of coffee. But the first thing you want to understand is what the projection of net income will be under different scenarios. To do the upfront analysis you have accumulated data on all the costs related to running a coffee shop. These costs and sales revenue, noted below, represent all the costs you can think of based on your vision of the coffee shop. You are the business owner, but you won't take a salary. Your earnings will be based on how much Net Income the coffee shop makes. YOUR ASSIGNMENT: 1. Classify each cost as fixed or variable (see below) 2. Calculate the annual cost for cost description (see below) Using the cost and sales data below, prepare Income Statements (to 3. the right) based on the criterion provided. ALL YELLOW CELLS REQURE DATA TO BE INPUT (START BELOW) Classify Cost Annual Cost 500 Monthly $ Monthly $ Annually $ Quarterly $ 150 800 16 150 Annually Monthly $ 100 13 GENERAL BUSINESS COSTS 14 Rent 15 Utilities Insurance 17 Water Coffee Making Equipment - Depreciation (based on cost of $12,000 and a 5 year life and zero 18 salvage value) 19 Table and Chair Rental Laptop and Credit Card Scanner - Depreciation (based on cost of $4,800 with a 4 year useful life and zero 20 salvage value) 21 Barrista Salary 22 Other Miscellaneous Costs 23 24 COST OF CUP OF COFFEE 25 Coffee Grounds 26 Sugar/Cream/Flavoring 27 Paper Cup and Top 28 Heat Protection Sleeve 29 Plastic Stirrer 30 31 SALES PRICE OF COFFEE Annually Annually $25,000 Monthly $ 150 0.75 0.05 per cup per cup per cup per cup per cup $ S $ $ $ 0.12 0.05 0.03 per cup $ 4.00 32 33 34 BE 14 Sheet1 Ready Type here to search O OOO Conditional Format Formatting as Table Good Neutral Insert Delete Format Cle Styles Cells K M N O INCOME STATEMENT SCENARIO CHANGE SCENARTO CHANGE SCENARIO CHANGE 1 (COMPARED TO 2 (COMPARED TO 3 (COMPARED TO BREAK EVEN POINT BASE SCENARIO BASE SCENARIO) BASE SCENARIO) BASE SCENARIO) What Happens to Net Income if I Use What Happens to Premium Kona Net Income if I Coffee Grounds Spend $5,000 on Costing $1.25 per YOU CREATE A Advertising and cup and Cups of SCENARO AND Annual Target Net Cups of Coffee Coffee Increases BRING IT TO THE At Break Even Point Income of $60,000 Increases 10%? 8%? DISCUSSION GROUP gin $ $ S $ $ $ $ $ S BREAK EVEN POINT CALCULATION BASED ON THE SCENARIO ABOVE ER DU 90N 00 Format Painter Clipboard Alignment Font H12 G C D E B GENERAL INSTRUCTIONS: You are considering opening up a coffee shop. It will be a straightforward place that sells various brews of coffee. But the first thing you want to understand is what the projection of net income will be under different scenarios. To do the upfront analysis you have accumulated data on all the costs related to running a coffee shop. These costs and sales revenue, noted below, represent all the costs you can think of based on your vision of the coffee shop. You are the business owner, but you won't take a salary. Your earnings will be based on how much Net Income the coffee shop makes. YOUR ASSIGNMENT: 1. Classify each cost as fixed or variable (see below) 2. Calculate the annual cost for cost description (see below) Using the cost and sales data below, prepare Income Statements (to 3. the right) based on the criterion provided. ALL YELLOW CELLS REQURE DATA TO BE INPUT (START BELOW) Classify Cost Annual Cost 500 Monthly $ Monthly $ Annually $ Quarterly $ 150 800 16 150 Annually Monthly $ 100 13 GENERAL BUSINESS COSTS 14 Rent 15 Utilities Insurance 17 Water Coffee Making Equipment - Depreciation (based on cost of $12,000 and a 5 year life and zero 18 salvage value) 19 Table and Chair Rental Laptop and Credit Card Scanner - Depreciation (based on cost of $4,800 with a 4 year useful life and zero 20 salvage value) 21 Barrista Salary 22 Other Miscellaneous Costs 23 24 COST OF CUP OF COFFEE 25 Coffee Grounds 26 Sugar/Cream/Flavoring 27 Paper Cup and Top 28 Heat Protection Sleeve 29 Plastic Stirrer 30 31 SALES PRICE OF COFFEE Annually Annually $25,000 Monthly $ 150 0.75 0.05 per cup per cup per cup per cup per cup $ S $ $ $ 0.12 0.05 0.03 per cup $ 4.00 32 33 34 BE 14 Sheet1 Ready Type here to search O OOO Conditional Format Formatting as Table Good Neutral Insert Delete Format Cle Styles Cells K M N O INCOME STATEMENT SCENARIO CHANGE SCENARTO CHANGE SCENARIO CHANGE 1 (COMPARED TO 2 (COMPARED TO 3 (COMPARED TO BREAK EVEN POINT BASE SCENARIO BASE SCENARIO) BASE SCENARIO) BASE SCENARIO) What Happens to Net Income if I Use What Happens to Premium Kona Net Income if I Coffee Grounds Spend $5,000 on Costing $1.25 per YOU CREATE A Advertising and cup and Cups of SCENARO AND Annual Target Net Cups of Coffee Coffee Increases BRING IT TO THE At Break Even Point Income of $60,000 Increases 10%? 8%? DISCUSSION GROUP gin $ $ S $ $ $ $ $ S BREAK EVEN POINT CALCULATION BASED ON THE SCENARIO ABOVE ER DU 90N 00
