ROUND TO 2 DECIMAL PLACES AND SHOW WORK CALCULATION

1. Stella operates a Cuban-themed food truck that sells sandwiches and rinks to office workers in the downtown area of Denver. Stella has been approached by the Grab-On coupon company to enter a partnership arrangement with them, whereby Grab-On would, on their own website, sell coupons good for $20 of Stellas F&B products.

The $20 coupons would sell for $10 each, and Grab-On would split the proceeds 50/50 with Stella. The sold coupons would have a 30-day expiration period, and Grab-ON states that in their experience only 90% of sold coupons will be redeemed by the expiration date.

Stella has begun forecasting the next 30 days sales and product expenses (without the coupon program), as well as her estimated guest count and CM per guest. Recalculate Stellas projected financial results assuming her original forecast and the sale of 10, 100, and 500 Grab-On coupons. (4 points).

Stellas Food Truck
# of Coupons Sold	0		10		100		500
Forecast	$	%	$	%	$	%	$	%
Noncoupon revenue	$15,000	100.0%	15,000	99.67%	$15,000		$15,000
Coupon revenue	$-	0%	$50	0.33%
Total Revenue	$15,000	100.00%		100.00%		100.0%		100.0%
Noncoupon product cost	$4,500.00	30.00%	$4,500.00	30.00%	$4,500.00	30.00%	$4,500.00	30.00%
Coupon product cost	$-	0%	$33.75	0.22%
Total Product Cost	$4,500.00
Contribution margin		70.00%
Guests Served	1,200		1,209
Contribution Margin per Guest