Question

Donut Information Based on the below data, create the profit model for Donuts to Go. Assume that each customer will buy one donut and one cup of coffee Sales estimate range from 200-5000 per week Time period Revenue: Cup of Coffee Revenue: Donut Donut ingredients per donunt) paper products: napkins, plates etc Insurance $4.00 $3.50 $0.60 per donut $5,550.00 month $200.00 Maintenance & Repairs to equipment month Marketing & Promotion: Advertising month Coffee per cup Coffee cups per cup Payroll: Wages (Owner/ Manager) month Payroll: Wages (per Employees) month Donut and Coffee equipment rent month Professional Fees: Accounting month Professional Fees: Legal month Powdered and Liquid Beverages Rent month Previous research expense for Donuts advancements Supplies: Office month Utilities month $0.00 $50.00 $0.25 $0.10 $2,500.00 $1,000.00 $500.00 $50.00 $25.00 $0.00 $1,000.00 $1,500.00 $25.00 $200.00 Muffins to Go Assume that each customer will buy one muffin and one cup of coffee Sales estimate range from 200-5000 per week

Answer 1

Donuts to go :

Basic detail compiled on the base of information available :

Donuts to Go
Revenue : Cup of coffee	4.00
Revenue : Donut	3.50
Variable Cost
Donut Ingredient	0.60
Coffee	0.25
Coffee Cup	0.10
Fixed Overhead
Insurance	200.00
Payroll	3,500.00
Donut Coffee equipment rent	500.00
Professional fees - Accounting	50.00
Professional fees - legal	25.00
Rent	1,000.00
Supplies: Office	25.00
Utilities	200.00
Marketing & Promotion	50.00
Total Fixed Overhead	5,350.00

Donuts to go Model for different quantities of Sales :

Donuts to Go
		Sales Units
Quantities	Per Unit	-	500	1,000	1,500	2,000	2,500	3,000	3,500	4,000	4,500	5,000
Coffee	4.00	-	2,000	4,000	6,000	8,000	10,000	12,000	14,000	16,000	18,000	20,000
Donut	3.50	-	1,750	3,500	5,250	7,000	8,750	10,500	12,250	14,000	15,750	17,500
Total Revenue	7.50	-	3,750	7,500	11,250	15,000	18,750	22,500	26,250	30,000	33,750	37,500
Total Fixed Expenses	5,350.00	5,350	5,350	5,350	5,350	5,350	5,350	5,350	5,350	5,350	5,350	5,350
Coffee Variable Expenses	0.35	-	175	350	525	700	875	1,050	1,225	1,400	1,575	1,750
Donut Variable Expenses	0.6	-	300	600	900	1,200	1,500	1,800	2,100	2,400	2,700	3,000
Total Variable Expenses	0.95	-	475	950	1,425	1,900	2,375	2,850	3,325	3,800	4,275	4,750
Total Expenses		5,350	5,825	5,825	5,825	5,825	5,825	5,825	5,825	5,825	5,825	5,825
Profit on Donut & Coffe		(5,350)	(2,075)	1,675	5,425	9,175	12,925	16,675	20,425	24,175	27,925	31,675

Basic detail compiled on the base of information available :

Muffins to Go
Revenue : Cup of coffee	4.00
Revenue : Muffin	5.50
Total Revenue	9.50
Variable Cost
Muffin Ingredient	1.20
Coffee	0.25
Coffee Cup	0.10
Total Variable Cost	1.55
Fixed Overhead
Insurance	500.00
Payroll	3,500.00
Muffin Coffee equipment rent	2,500.00
Professional fees - Accounting	50.00
Professional fees - legal	25.00
Rent	2,000.00
Supplies: Office	25.00
Utilities	500.00
Marketing & Promotion	250.00
Total Fixed Overhead	8,600.00

Muffins to go Model for different quantities of Sales :

Muffins to Go
		Sales Units
Quantities	Per Unit	-	500	1,000	1,500	2,000	2,500	3,000	3,500	4,000	4,500	5,000
Coffee	4.00	-	2,000	4,000	6,000	8,000	10,000	12,000	14,000	16,000	18,000	20,000
Muffins	5.50	-	1,750	3,500	5,250	7,000	8,750	10,500	12,250	14,000	15,750	17,500
Total Revenue	9.50	-	3,750	7,500	11,250	15,000	18,750	22,500	26,250	30,000	33,750	37,500
Total Fixed Expenses	8,600.00	8,600	8,600	8,600	8,600	8,600	8,600	8,600	8,600	8,600	8,600	8,600
Coffee Variable Expenses	0.35	-	175	350	525	700	875	1,050	1,225	1,400	1,575	1,750
Muffin Variable Expenses	1.2	-	300	600	900	1,200	1,500	1,800	2,100	2,400	2,700	3,000
Total Variable Expenses	1.55	-	475	950	1,425	1,900	2,375	2,850	3,325	3,800	4,275	4,750
Total Expenses		8,600	9,075	9,075	9,075	9,075	9,075	9,075	9,075	9,075	9,075	9,075
Profit on Muffin & Coffee		(8,600)	(5,325)	(1,575)	2,175	5,925	9,675	13,425	17,175	20,925	24,675	28,425

Note : The previous R&D cost incurred is sunk cost hence not considerable.