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How many cakes would Lady M need to sell in a year in order to break even. Does this number seem feasible given prior sales?

  • How many cakes would Lady M need to sell in a year in order to break even. Does this number seem feasible given prior sales?
  • Assuming sales are break-even, how quickly would sales need to grow after the first year to pay the start-up costs within 5 years? Is this growth rate feasible?
  • What is your recommendation? Should Romaniszyn open the new location in the World Trade Center?
  • Calculate free cash flows in years 2012-2014 and projected free cash flows in 2015-2019.

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