Financials
Breakeven Analysis
Breakeven units (X)
Fixed costs (FC) $101,228.00
Variable costs (VC) $2.85 X
Breakeven sales (BES) $12.50 X
BES FC VC
$12.50 X $101,228.00 $2.85 X
$12.50 X $2.85 X $101,228.00 $9.65 X $101,228.00
X 10,490 units per year, or 874 units per month, or 29 units per day ($362.50 per day).
Fixed Costs
| Printing: | |
| — Menus | |
| 10,000 @ $200.00 | $ 2,000.00 |
| Typesetting | 40.00 |
| — Circular fridge magnets | |
| 10,000 @ $1,500.00 | 1,500.00 |
| — Business cards | |
| 1,000 @ $35.00 | 105.00 |
| — Rubber stamps | |
| $14.00 each | 56.00 |
| — Letterhead & misc. | 499.00 |
| $ 4,200.00 | |
| Advertising: | |
| — Mass mailing | |
| Bulk rate per year | 75.00 |
| Bulk rate one time fee | 75.00 |
| $550.00 per mailing | 2,200.00 |
| — Bonanza Newspaper | |
| Preprinted inserts @ $206.40 | 413.00 |
| 3" weekly ads @ $31.38 | 1,508.00 |
| — North Tahoe Weekly | |
| 3" weekly ads @ $31.38 | 1,508.00 |
| — Tahoe Yellow Pages | |
| $200.00 per month | 2,400.00 |
| $ 7,179.00 | |
| Rent and utilities: | |
| — Rent | |
| $900.00 per month (water and garbage included) | $10,800.00 |
| — Electric | |
| $200.00 per month | 2,400.00 |
| — Gas | |
| $300.00 per month | 3,600.00 |
| — Telephone | |
| Install @ $82.00/line | 246.00 |
| $54.00 per month | 648.00 |
| $17,694.00 | |
| Insurance and licenses: | |
| — Fire & liability | |
| $200.00/mo. for 1st 10 months | $ 2,000.00 |
| — Licenses & fees | |
| Health permit | 175.00 |
| Misc. fees | 200.00 |
| $ 2,375.00 | |
| Equipment: | |
| — Mixer | $ 3,500.00 |
| — Oven | 2,500.00 |
| — Computer | 1,500.00 |
| — Equipment maintenance | 670.00 |
| — Hood/exhaust maintenance | 330.00 |
| — Food storage box | 204.00 |
| — Dough scrapper | 38.40 |
| — Bun pan rack | 165.85 |
| — Pizza keeper (3) | 85.95 |
| — Pizza knife (3) | 107.10 |
| — Pizza peel (3) | 33.54 |
| — Apron (24) | 78.66 |
| — Grease proof mat (5) | 459.00 |
| — Storage rack (2) | 107.50 |
| $ 9,780.00 | |
| Labor: | |
| — Salaries for partners | |
| $20,000 per year | $60,000.00 |
| Total projected fixed costs for first year: | $101,228.000 |
Variable Costs
| Produce and meats: | |
| — Bell peppers | $ .90/lb |
| — Tomatoes | .80/lb |
| — Onions | .50/lb |
| — Garlic | 3.20/lb |
| — Mushrooms | 1.40/lb |
| — Olives | 2.00/lb |
| — Anchovies | 2.85/tin |
| — Jalapenos | 1.47/lb |
| — Pinapple | 2.39/can |
| — White flour | 11.00/50lb bag |
| — Wheat flour | 12.88/50lb bag |
| — Cheese | 1.15/lb |
| — Pepperoni | 3.18/lb |
| — Canadian bacon | 3.36/lb |
| — Hamburger | 1.39/lb |
| — Sausage | 1.59/lb |
| — Salami | 3.18/lb |
| Delivery containers | |
| — Pizza boxes | |
| 12" @ $0.28 per box | $28.00/case |
| 14" @ $0.37 per box | $37.25/case |
| 16" @ $0.38 per box | $37.65/case |
| Average cost per pizza: | |
| — Dough | $ 0.20 |
| — Sauce | .50 |
| — Toppings | .80 |
| — Cheese | 1.00 |
| — Delivery box | .35 |
| $ 2.85 per pizza |
Projected Income Statement
| Revenue | ||
| Food sales | $ 363,575 | |
| Operating expenses | ||
| Labor | $ 60,000 | |
| Rent | 10,800 | |
| Utilities | 6,894 | |
| Insurance | 2,000 | |
| Printing | 4,200 | |
| Advertising | 7,179 | |
| Lics & fees | 375 | |
| Equipment | 9,780 | |
| Direct materials | 82,895 | |
| Total operating expenses | 184,123 | |
| Income before taxes | $ 179,452 |
Cash Flow Projection 1994–1997
| December | January | February | March | April | May | |
| Beginning cash balance | $ 40,000 | $ 25,298 | $ 53,536 | $ 75,569 | $ 89,852 | $ 97,095 |
| Cash receipts: | ||||||
| Cash sales for the month | 7,875 | 37,500 | 37,500 | 30,000 | 21,000 | 18,000 |
| Cummulative sales | $ 7,875 | $ 45,375 | $ 82,875 | $ 112,875 | $ 133,875 | $ 151,875 |
| Cash disbursments: | ||||||
| Accounts payable | 2,000 | 1,769 | 8,550 | 8,550 | $ 6,840 | $ 4,788 |
| Rent | 900 | 900 | 900 | 900 | 900 | 900 |
| Utilities | 746 | 554 | 554 | 554 | 554 | 554 |
| Insurance | 200 | 200 | 200 | 200 | 200 | 200 |
| Printing | 3,200 | 0 | 0 | 0 | 0 | 0 |
| Advertising | 1,376 | 813 | 263 | 263 | 263 | 263 |
| Lics & fees | 375 | 0 | 0 | 0 | 0 | 0 |
| Equipment | 8,780 | 0 | 0 | 0 | 0 | 0 |
| Maintenance | 0 | 0 | 0 | 250 | 0 | 0 |
| Salaries | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Total disbursed | $ 22,577 | $ 9,263 | $ 15,467 | $ 15,717 | $ 13,757 | $ 11,705 |
| Cash +/- from operations | ($ 14,702) | $ 28,238 | $ 22,033 | $ 14,283 | $ 7,243 | $ 6,295 |
| Balance carried over | $ 25,298 | $ 53,536 | $ 75,569 | $ 89,852 | $ 97,095 | $ 103,390 |
| June | July | August | September | October | November | |
| Beginning cash balance | $ 103,390 | $ 124,789 | $ 147,127 | $ 168,610 | $ 186,893 | $ 190,481 |
| Cash receipts: | ||||||
| Cash sales for the month | 33,750 | 37,500 | 37,500 | 33,750 | 18,000 | 18,000 |
| Cummulative sales | $ 185,625 | $ 223,125 | $ 260,625 | $ 294,375 | $ 312,375 | $ 330,375 |
| Cash disbursments: | ||||||
| Accounts payable | 4,104 | 7,695 | 8,550 | 8,550 | 7,695 | 4,104 |
| Rent | 900 | 900 | 900 | 900 | 900 | 900 |
| Utilities | 554 | 554 | 554 | 554 | 554 | 554 |
| Insurance | 200 | 200 | 200 | 0 | 0 | 0 |
| Printing | 1,000 | 0 | 0 | 0 | 0 | 0 |
| Advertising | 263 | 813 | 813 | 263 | 263 | 263 |
| Lics & fees | 0 | 0 | 0 | 0 | 0 | 0 |
| Equipment | 0 | 0 | 0 | 0 | 0 | 0 |
| Maintenance | 330 | 0 | 0 | 200 | 0 | 0 |
| Salaries | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Total disbursed | $ 12,351 | $ 15,162 | $ 16,017 | $ 15,467 | $ 14,412 | $ 10,821 |
| Cash +/- from operations | $ 21,399 | $ 22,338 | $ 21,483 | $ 18,283 | $ 3,588 | $ 7,179 |
| Balance carried over | $ 124,789 | $ 147,127 | $ 168,610 | $ 186,893 | $ 190,481 | $ 197,660 |
| December | 1995 | 1996 | 1997 | |
| Beginning cash balance | $ 197,660 | $ 219,619 | $ 460,040 | $ 871,040 |
| Cash receipts: | ||||
| Cash sales for the month | 33,200 | N/A | N/A | N/A |
| Cummulative sales | $ 363,575 | $ 436,290 | $ 800,000 | $ 1,300,000 |
| Cash disbursments: | ||||
| Accounts payable | 4,104 | 99,474 | 182,400 | 296,400 |
| Rent | 900 | 10,800 | 21,600 | 32,400 |
| Utilities | 554 | 8,094 | 16,000 | 24,000 |
| Insurance | 200 | 2,000 | 4,000 | 6,000 |
| Printing | 0 | 4,000 | 8,000 | 12,000 |
| Advertising | 263 | 8,000 | 16,000 | 24,000 |
| Lics & fees | 0 | 500 | 1,000 | 2,000 |
| Equipment | 0 | 2,000 | 18,000 | 20,000 |
| Maintenance | 220 | 1,000 | 2,000 | 3,000 |
| Salaries | 5,000 | 60,000 | 120,000 | 180,000 |
| Total disbursed | $ 11,241 | $ 195,868 | $ 389,000 | $ 599,800 |
| Cash +/- from operations | $ 21,959 | $ 240,422 | $ 411,000 | $ 700,200 |
| Balance carried over | $ 219,619 | $ 460,040 | $ 871,040 | $ 1,571,240 |
