Question

Slove Lady M Break Even Excel with formulas

YEAR ONE
	Break-even
Rent	$                    310,600.00
Utilities	$                      38,644.00
Labor	$                    594,750.00
COGS (50% of Gross Sales)	$                    944,620.00
Total Cost	$                 1,888,614.00
Gross Sales	$                 1,889,240.00
Average Retail per Cake	$                             80.00
Cakes Sold per year	23,616
Cakes Sold per day	64.7
Net Income	$                           626.00
Margin	0.03%		Growth Rate
	Year One	Year Two	Year Three	Year Four	Year Five
Rent (3% escalation)	$                    310,600.00
Utilities (3% escalation)	$                      38,644.00
Labor (5% escalation)	$                    594,750.00
COGS (50% of Gross Sales)	$                    944,620.00
Total Cost	$                 1,888,614.00
Gross Sales	$                 1,889,240.00
Average Retail per Cake	$                             80.00
Cakes Sold per year	23,616
Cakes Sold per day	64.7
Net Income	$                           626.00
Margin	0.03%
Start-up Cost Left	$                    999,374.00

Answer 1

	Year 1		Year 2
Rent (3% Escalation)	$          310,660	Rent*1.03	$          319,980
Utilities (3% Escalation)	$            38,644	utilites*1.03	$            39,803
Labour (5% Escalation)	$          594,750	Labour*1.05	$          612,593
COGS (50% of Gross Sale)	$          944,620	Gross sales for year 2*50%	$          972,376
total Cost	$       1,888,614		$       1,944,752
Gross Sales	$       1,889,240	As per calculation below	$       1,944,752
Average Retail per cake	$                    80		$                    80
Cake sold per Year	23,616		24309
Cake sold per day	64.70		66.60
Net Income	$                 626		$                0.38
Margin	0.03%		0.0%
Total Other operation cost = Rent + utilites + Labour			972,376
Net Income at Break even	$0
Net Income = Gross Sales - COGS - Other operation cost
IF sale is X than COGS if 50% of X, putting it in above equation
0= X-.50X-972376
0.50X = 972376
X =972376/0.5
Gross Sales = $1,944,752

For 5 years

	Year 1	Year 2	Year 3	Year 4	Year 5
Rent (3% Escalation)	$          310,660	$         319,980	$                329,579	$            339,467	$            349,651
Utilities (3% Escalation)	$            38,644	$           39,803	$                  40,997	$              42,227	$              43,494
Labour (5% Escalation)	$          594,750	$         612,593	$                643,223	$            675,384	$            709,153
COGS (50% of Gross Sale)	$          944,620	$         972,376	$             1,013,799	$         1,057,078	$         1,102,298
total Cost	$       1,888,614	$      1,944,752	$             2,027,598	$         2,114,155	$         2,204,595
Gross Sales	$       1,889,240	$      1,944,752	$             2,027,598	$         2,114,155	$         2,204,595
Average Retail per cake	$                   80	$                  80	$                         80	$                     80	$                     80
Cake sold per Year	23,616	24,309	25,345	26,427	27,557
Cake sold per day	64.7	66.6	69.4	72.4	75.5
Net Income	$              626.0	$                   -	$                          -	$                      -	$                      -
Margin	0.03%	0.00%	0.00%	0.00%	0.00%
Working
Other Operating Cost Total	944,054	972,376	1,013,799	1,057,078	1,102,298
Gross Sale as per below		1,944,752	2,027,598	2,114,155	2,204,595
Note for Gross sale working
Net Income at Break Even =0
Net Income = Gross Sales - COGS - Other operation cost
IF sale is X than COGS if 50% of X, putting it in above equation
0= X-.50X-Other Operation Cost
0.50X = Operation cost
X =Operationcost /0.5
Gross Sales = Operational cost/0.5