Maria Cupcakes After her graduation, Maria decided to start her new Cupcakes Shop in a fast growing Area. As a source of initial cost financing, she received a loan of 400KEGP at interest rate of 15%, to be paid over 4 years.

Fixed Costs per Month Staff salaries: 25,000

Rental fees: 65,000

Expected demand and costs per Piece

Variable Costs (Expenses Only) per Unit: 3 EGP

Expected Average number of Sold Units/Day: 200 pieces (Expected Growth rate of 20% y/y). Based on her pricing strategy, Maria set a price of 35 EGP/pc.

Vanilla Cupcakes- Bill of Materials- Y1 Ingredient Qty Unit of Measure

Plain 25 G

Sugar 100 G

Eggs 1 Piece

Vanilla Extract 4 Teaspoon

Baking Powder 2 Teaspoon

Milk 50 G Key Assumptions Year 1 Prices Ingredient Price Unit of Measure Currency Plain 10 kg EGP Sugar 1 kg US Large Eggs 2 pc EGP Vanilla Extract 2 Teaspoon EGP Baking Powder 2 Teaspoon EGP Milk 11 kg EGP 1USD:18EGP Inflation Rate:25% Working Days/year: 300 Days Rental fees increasing by 5 % y/y (5 years contract ) Material prices increasing 10% y/y For Materials purchased in local Currency Starting year 4, Maria is planning to have a new Recipe.

Vanilla Cupcakes- Bill of Materials- Y4 Ingredient QTY Unit of Measure Plain 20 G Sugar 100 G large Eggs 1 PIECE Vanilla Extract 3 Teaspoon Baking Powder 2 Teaspoon Milk 50 G In 40 mins, help Maria to assess the following; CM % in Y1. Required volume to Achieve 50,000 EGP Net in profit in year1. Profit & Loss Statement for year 1 & year 5. Identify Risk & opportunities For Maria Business.