use the provided document information to create a balance sheet.
You need to project sales and all costs per the fairs and report your results.
You will need to prepare:
- balance sheet
- there should be enough data to allow someone to look at this and decide to invest in your entity.
- This will cover June (San Diego) July (Orange County) and August (Los Angeles) – fair times.
You will have $250,000 as seed money for your operation for budget purposes.
CONCLUSIONS, SUCCESSFUL YEAR? DO THE SAME THING NEXT YEAR? WHAT CHANGES TO MAKE?
ANY REPORTS ARE TO BE WORD TIME NEW ROMAN 12 FONT
- How many will buy
- About 1.1 million people go to each fair. 1.1/23 days of fair = 47,826 people per day. 1% of that = 478 people buy per day. To be safe 400 people buy a day.
- Costs:
- Equipment
- Oven → 230 Potato capacity($12,926 + 679.73 import tax) → $13,605.73 (Oven comes with condiment storage)
- Thing to store potatoes (cooler w newspaper)
- Square payment reader → $41.63 (contactless so it accepts phone card payments & chip)
- Ketchup Dispenser → $70
- Mustard Dispenser → $70
- Cheese Dispenser → $369
- Refrigerator (refrigerated trailer) → ($10,332.14 + $656.84 import tax) → $10,988.98
- Total Cost of Equipment: $25,145.34
- Supplies
- Tongs → $1.88 per pc x5 → $9.40
- Plates and utensils to serve → $3,600 for 36,000 potato ($.10 per pc) Alibaba —- serving box &$1,493.64 for 36,000 forks ($41.49 for 1000)
- Napkins → Bulk pack of 500 quantity napkins for $2.36 (Walmart) for 3 months & one napkin per serving + extras $265.5
- Aluminum foil →$85.68 (Case of 2,400)
- Hand sanitizer → $39.99 for a gallon (refill small container near cashier) Amazon → $1799.55 for half a gallon per day for 3 months
- Menu → $150 for a banner menu x2 → $300
- Gloves → $9.99 for 500 pc cooking gloves (Amazon) x3 → $29.97
- Hair nets → $8.99 for 100 pc (Amazon) (300 pcs for 3 months) → $26.97
- Hats → $6 per hat (with custom logo) → $72 (12 hats)
- Aprons (12 CustomInk Stain Release Full Length Aprons → $20.43 each at a total of $245.16)
- Total Cost of Supplies: $7,970.22
- Ingredients:
- Potatoes
- $13.99 for 50 lbs of pots. That’s 100 potatoes. = $55.96/day. $0.1399 per potato
- Cheese (Dispensed) → $12.66 6 lbs → 27 grams serving size → 0.0595248 lbs per serving. 101 servings. $0.125 per serving.
- Ketchup
- $6.49 for 114 ounces. 3231.85 grams. 14 grams / serving. $0.028 per serving.
- Mustard
- $5.49 for 105 ounces. 2976.7 grams. 14 grams/ serving. $0.026/serving.
- Sour cream
- 20 grams per serving. = 0.044 pounds. Package of 5 pounds = $7.09. Servings in 5 pounds: 568.18. Lasts 1.42 days. 1 day = $4.99. $0.0125 per serving.
- Butter
- 720 servings for $23.79. $0.033 per serving.
- Salt
- $6.49 for 3000 count (packets). $0.002 per serving.
- Pepper
- 3000 count for $11.49 (packets). $0.00383 per serving.
- Chives
- Or $152.49 per 10lbs or 86636.1 grams. Serving size: 4.5 grams. $0.0079 per serving.
- Hot sauce
- $27.49 for a 500 count. $0.05498 per serving.
- Bacon bits
- 7 grams per serving. 0.0154324 pounds per serving. $65.59 for 10 pounds. 648 servings. 1.75 days. $0.101 per serving.
- 7 grams per serving. 0.0154324 pounds per serving. $65.59 for 10 pounds. 648 servings. 1.75 days. $0.101 per serving.
- Total Cost of Ingredients: $722.79 per week
- Potatoes
- Equipment
- Capital: $200,000
Break-even analysis:
Fixed cost: total cost of supplies + total cost of equipment = $7,970.22 + $25,145.34 = $33,115.56 + 0.22 Sales
Labor cost for LA fair: $9,990
Labor cost for Orange county fair: $12,870
Labor cost for San Diego fair: $14,220
Variable cost for potato +condiments: 0.48021 per potato
Sale price for potato: $7.00
CM per unit: 7 – 0.48 = $6.52
CM ratio: 6.52 / 7 = 0.9314
Breakeven:
San Diego:
0 = 0.9314(sales) – 33115.56 fixed – $14,220 labor – 0.22(Sales)
0 = 0.7114(sales) – $47,335.56
$47,335.56 / 0.7114 = $66,535.92771
$66,535.92771 / 7 = 9505.13 or 9506 potatoes. 400 people a day. Break-even in 24 days.
LA:
0 = 0.9314(sales) – 9,990 labor – 0.22(Sales)
0 = 0.7114(sales) – 9,990
9,990 / 0.7114 = $14,042.73 sales
$14,042.73 / $7 = 2007 potatoes. (5 days).
Orange County:
0 = 0.9314(sales) – $12,870 labor – 0.22(sales)
12,870 / 0.7114 = $18091.008 sales
$18091.008 / $7 = 2,585 potatoes = 7 days.
SALES Budget
| SD (25 days) | OC (22 days) | LA (18) | TOTAL | |
| Budgeted Units | 10,000 | 8,800 | 7,200 | 26,000 |
| Budgeted Dollar Sales | $70,000 | $61,600 | $50,400 | $182,000 |
| COGS | $5,341.1 | $4,700.17 | $$3,845.59 | $13,886.86 |
| Budgeted Labor | $14,220 | $12,870 | $9,990 | $37,082 |
Budgeted Units= 400 potatoes per day
SD: 400 * 25 = 10,000
OC: 400 * 22 = 8,800
LA: 400 * 18 = 7,200
Budgeted Dollar Sales= budgeted units * $7
SD: (10,000)($7) = $70,000
OC: (8,800)($7) = $61,600
LA: (7,200)($7)= $50,400
COGS= (total cost of ingredients per potato)(budgeted unit sales)
SD: (.53411)(10,000) = $5,341.1
OC: (.53411)(8,800)= $4,700.17
LA: (.53411)(7,200) = $$3,845.59
Contribution Margin Statement:
Contribution margin is Selling price –Variable cost
Contribution margin statement for the 3 fairs will be
Potatoes contribution margin =7-0.1399= 6.8601
potatoes + condiments =7.5-0.29561=7.20439
for potatoes=7-0.48021=6.5179
Expected revenue =7*400=2800*30=84000
7.5*400*30=90000*80%=72000 =Total revenue is $156,000
Total cost =25145+7970+722.9*4= $36,000
Add Salary
Contribution Statement of San Diego
| Sales Revenue 7*400*30 | $156,000 | |
| Less Variable cost | ||
| 1.0.1399*36000 | $5,036.4 | |
| 0.29561*36000 | $10,641 | |
| 0.48021*36000 | $17,288 | |
| contribution margin | $123,034.5 | |
| Fixed cost | $36,000 | |
| Salary | $14,220 | |
| Net Income Contribution | $72,614 |
Contribution Statement of LA
| Sales Revenue 7*400*30 | $156,000 | |
| Less Variable cost | ||
| 1.0.1399*36000 | $5,036.4 | |
| 0.29561*36000 | $10,641 | |
| 0.48021*36000 | $17,288 | |
| Contributions margin | $123,034.5 | |
| Fixed cost | $36,000 | |
| Salary | $9,990 | |
| Net Income Contribution | $77,044 |
Contribution Statement of Orange County
| Sales Revenue 7*400*30 | $156,000 | |
| Less Variable cost | ||
| 1.0.1399*36000 | $5,036.4 | |
| 0.29561*36000 | $10,641 | |
| 0.48021*36000 | $17,288 | |
| contribution margin | $123,034.5 | |
| Fixed cost | $36,000 | |
| Salary | $12,870 | |
| Net Income Contribution | $74,164 |
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