Letuscaters 2011 P&L financial statement via excel spreadsheet provided. Note that this year's sales exceeded 800,000. Let x= catering sales and our revenue equetion is R(x)=m_rx where slope of the revenue equations is m_r. Plug in the numbers and you get 89,938.01=m_r(811,458.75) then solve for m_r=89,238.01/811,458.75=.11 or 11%. This was commission received from the restuarant for each order we gave them.1. You are calculating the cost function for the business in 2011. Just a reminder the cost function is defined as C(x)=m_cx+b where the slope m_c is the variable cost and b is the fixed cost. Group all the expenses in either a fixed cost or variable cost bucket. A cost is variable if it depends on catering sales and if it does not depend on our catering sales then it is not a fixed cost.2. From the model calculate the break0even sales number per month. Note the numbers in the spreadsheet are for the complete year.3. Calculate the profit function. Also as a business owner u want to make more profit. ways to do that decrease cost with same revenue or increase the revenue more than you increase cost. using the cost, revenue sand profit equation, come up with ideas to increase profit. Upto five ideas accepted. Must present how much cost adds to the model and how much revenue must this sales person bring into the company to increase profits. So, assume a salary you will pay this person using your equations to figure out how much extra "catering sales" your new employee must bring in to pay for themselves. Show work and calculations.1. Increase revenue by hiring a salesperson. I will pay them 3000 per month. (then show your calculations using this 3000$ cost on how much catering sales the salesperson must bring in to cover their cost).

The excel spreadsheet :

Aurinkor OP E Letuscate: December 2011 Financial Statements project - Protected View e Search nicholas legend unter NL Fle Home Insert Page Layout Formu as Data Revic View Hcp Share Comments PROTECTED VIEW Be cardul files from the Internet can contain viruses. Unless you need to cit. it's safe to stay in Protected View Enable dung HS be E F G | 1 J L M N N O P Q R 3 T U w w X Y Z z AB AD Jan-Des 11 ABCD 1 2 Ordinary Income penge 3 Culing Sa 5 Totalem 211,4585 811,458.75 6 7 8 Cost of lado Payment to Restaurant Total COGS 7222304 739 722,220.94 9 Net Revenue 80,23001 17,456.79 12,368.00 349.60 150.00 10 11 12 13 14 14 16 11 18 19 20 21 22 23 24 28 26 27 20 8,90 29,45713 2,421.4 370 476 2n 1828 Expense American Express Merchant Fees Amortization Expense Answering serve Bank Service Charges Bucher to Brow Puma Rewards Customer Salary Cellular Phone Computer Equipment Constant Gent Terepenses Google AdWords Authorize.net Processo Meals and Entertainment Visa Mastercard Merchant Fees Office Supplies Parking Expense Postage and Delivery Printing and production Accounting and legal Sakurat. Telemarketing Telephone Expense Sales Per Caminin Trawni PARA Website Development Costa Weblating See 30 31 32 33 34 35 657.31 121.50 724.50 140.50 3406 29.00 4,350.00 3813 2, 2013 1PT 3,000 PACO 37 Pront - 10 DED.79 - Cash Flow 7,100.21 40 41 42 43 40 44 YTD Ins Stunt Ready 100% Type here to search O f AO 45000 10:35 AM Aurinkor OP E Letuscate: December 2011 Financial Statements project - Protected View e Search nicholas legend unter NL Fle Home Insert Page Layout Formu as Data Revic View Hcp Share Comments PROTECTED VIEW Be cardul files from the Internet can contain viruses. Unless you need to cit. it's safe to stay in Protected View Enable dung HS be E F G | 1 J L M N N O P Q R 3 T U w w X Y Z z AB AD Jan-Des 11 ABCD 1 2 Ordinary Income penge 3 Culing Sa 5 Totalem 211,4585 811,458.75 6 7 8 Cost of lado Payment to Restaurant Total COGS 7222304 739 722,220.94 9 Net Revenue 80,23001 17,456.79 12,368.00 349.60 150.00 10 11 12 13 14 14 16 11 18 19 20 21 22 23 24 28 26 27 20 8,90 29,45713 2,421.4 370 476 2n 1828 Expense American Express Merchant Fees Amortization Expense Answering serve Bank Service Charges Bucher to Brow Puma Rewards Customer Salary Cellular Phone Computer Equipment Constant Gent Terepenses Google AdWords Authorize.net Processo Meals and Entertainment Visa Mastercard Merchant Fees Office Supplies Parking Expense Postage and Delivery Printing and production Accounting and legal Sakurat. Telemarketing Telephone Expense Sales Per Caminin Trawni PARA Website Development Costa Weblating See 30 31 32 33 34 35 657.31 121.50 724.50 140.50 3406 29.00 4,350.00 3813 2, 2013 1PT 3,000 PACO 37 Pront - 10 DED.79 - Cash Flow 7,100.21 40 41 42 43 40 44 YTD Ins Stunt Ready 100% Type here to search O f AO 45000 10:35 AM