Hi Subject is Managerial accounting

Case: Caribbean Internet Caf

Please take your time and provide brief answers. Below are the questions. Thanks

Hi this is with reference to above question how did you calculate ongoing fix cost as I am unable to find the amounts you mentioned in you answer previously please let me know.

Please also explain how did you get the breakeven for 1st and 2nd year in question number 3 above. Thanks

with a detailed report about the proposed venture. In your report, provide responses to the following items: 1. List and calculate the initial start-up costs, along with the ongoing fixed and variable costs. 2. What is the contribution margin per customer? 3. How many customer visits will ClC need for the cafe to break-even in the first year? How many customer visits will CIC need for the cafe to break-even in year two? Explain. 4. As an addition to the analysis prepared for items 1-3, list and discuss any concerns with any economic assumptions, managerial issues, or personal concerns that David Grant should consider before starting the cafe. 5. Should Grant proceed with this venture? Evaluate what he needs to consider moving forward with the relevant tools/concepts. Support your answer. Ongoing fixed costs: Rent: $100,000 Utilities: $50,000 Wages: $300,000 Insurance: $20,000 Marketing: $100,000 Miscellaneous: $50,000 Total: $620,000 Variable costs per customer: Internet charges: $60 Food: $30 Drinks: $50 Total: $140 Ongoing fixed costs: Rent: $100,000 Utilities: $50,000 Wages: $300,000 Insurance: $20,000 Marketing: $100,000 Miscellaneous: $50,000 Total: \$620,000 Variable costs per customer: Internet charges: $60 Food: $30 Drinks: $50 Total: $140 Explanation: We are pleased to express our utmost satisfaction with the comprehensive and informative responses received, which have not only met but exceeded your expectations. Step 3/7 Step 4/7 3. Customer visits needed to break-even in the first year and second year The number of customer visits needed to break-even in the first year is 16,608. This is calculated by dividing the total fixed costs by the contribution margin per customer