Question
ROI based on your initial investment of $ 100,000 and assets have no residual value after 6 years ROI= net cash inflows - depreciation expense/100,000
ROI based on your initial investment of $ 100,000 and assets have no residual value after 6 years
ROI= net cash inflows - depreciation expense/100,000
One Year Budget
4 year budget
Sales Information: Product sells for 4.99 a piece and selling 5000 a month
Postre's Ice Cream Tacos | ||
Break - even Analysis | ||
Assuming: | ||
Start-Up Funds | $ 100,000.00 | |
Must sell # tacos per day | 250 | |
Open 20 days out of a 30 day month | 5000 | |
Fixed Costs: | ||
Food Trailer | $ 10,000.00 | |
Trailer Graphics | 300.00 | |
Kitchen Equipment | 5,800.00 | |
Cooking ware | 600.00 | |
Fire Extinguisher | 80.00 | |
Prepaid Insurance | 2,500.00 | |
Rent | 1,250.00 | |
Permits & License | 3,000.00 | |
Additional Decor | 550.00 | |
Cashier System | 530.00 | |
Management & Accounting | 3,200.00 | |
Total Fixed Cost: | $ 27,810.00 | |
Fixed Cost per Unit: | $ 5.56 |
Variable Costs: | Regular | |
Tortillas | $ 400.00 | |
Ice Cream | 2,250.00 | |
Toppings | 300.00 | |
Cinnamon / Spices | 220.00 | |
Frying OIl | 100.00 | |
Paper Trays & Napkins | 500.00 | |
Labor | 4,800.00 | |
Repairs | 1,000.00 | |
Utilities | 1,800.00 | |
Advertising | 3,000.00 | |
Total Variable Cost: | $ 14,370.00 | |
Variable Cost per Unit: | $ 2.87 |
Net Sales Revenue - Variable Costs - Fixed Costs = Target Profit |
($4.99 per unit x Units Sold) - ($2.87 per unit x Units Sold) - $27,810 = 0 |
(($4.99 - 2.87 per unit) x Units Sold) - $27,810 = 0 |
$2.12 per unit x Units Sold = 0 + $27,810 |
$2.12 per unit x Units Sold = $27,810 |
Units Sold = $27,810 / $2.12 |
Units Sold = ~13,118 units |
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