Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are interested in starting a fresh fruit juice business close the Binus@Syahdan campus. You are able to get a small stand for 3 million

You are interested in starting a fresh fruit juice business close the Binus@Syahdan campus. You are able to get a small stand for 3 million rupiah a month but have to pay the rental cost for one year in advance. Furthermore, there is a setup cost of 5 million rupiah for the stand and equipment. Labor cost for one employee is 4 million rupiah/month; the fruit juice stand requires only one employee to run. Research shows that there is a sales opportunity of selling at least 80 cups/day. You are aiming for setting a margin of Rp 9000/cup.

Questions:

  1. How many cups do you need to sell to break-even?

  2. If you want to achieve a profit of 25 million at the end of the year, how many cups do you

    need to sell?

  3. How many days do you need to be in business to make a profit of 25 million?

  4. You are offered a location at FX Sudirman for the same size but for 5 million a month, you are

    thinking of you can sell at a premium margin of 11,000. Create a scenario summary to show the comparison of profits between store in Syahdan, FX, and both FX + Syahdan.

Note:

  • - Assume that you are comparing profit for a year with sales of 80 cups/day.

  • - Be careful about the (different) margins between the two locations.

  • - All costs are applicable to both stores including setup cost and labor cost.

data

Month 12
Monthly Rental Cost 3.000.000
Setup Cost 5.000.000
Monthly Labor 4.000.000
Sales Opportunity / day 80
Margin / cup 9.000

please show me how to answer it in excel step by step

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Auditing Contributing To Accountability In Democratic Government

Authors: Jeremy Lonsdale, Peter Wilkins, Tom Ling

1st Edition

1848449720, 978-1848449725

More Books

Students also viewed these Accounting questions