Question
Gilbert Monzon wants to kick it up a notch and open a newrestaurant. In order to do so, he needs to convince Banco Popularthat his
Gilbert Monzon wants to “kick it up a notch” and open a newrestaurant. In order to do so, he needs to convince Banco Popularthat his up-scale restaurant will be profitable. Gilbert wants touse D-cide to model the profit and loss for the next six months. Hewill use this information in the business plan he plans to presentto the CFO of the bank. Gilbert has decided to name his restaurant“Parrot Club” and he has located the perfect building in San Juan.Rent is $2000 and utilities are $1000 per month. Gilbert estimatesthat on average the restaurant will be open 20 days each month. Thebuilding has capacity for 20 tables with 4 chairs per table.Advertising should cost about $500 per month. The average dollarspent by each patron in the first month is estimated to be $15.Gilbert believes this figure should increase by $1 each month. Heestimates traffic to be 75%, 80%, 85%, 90%, 95%, 95% of capacityover the next six months. From his experience he believesmiscellaneous expenses (linen, menus, etc.) will add up to $1000per month, cost of goods sold (food, liquor, etc.) 35% of revenueand pay roll 20% of revenue. Finally, he assumes that the tableswill turn over twice a day during the first month, three timesduring the second and third months and four times per day duringthe fourth, fifth and sixth months. What are his estimated profitfor the next six months.
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