Accounting assignments

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Calculation of First Year Break Even Points Calculation of First Year Break Even Points
Note M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 1st 1st 2nd 3rd 4th 1st
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Qtr Qtr Qtr Qtr Year
Stores 1200 2400 3600 4800 6000 7200 8400 9600 10800 12000 13200 14400 93,600 93,600
Multiply by 200 carts 200 200 200 200 200 200 200 200 200 200 200 200
Total Carts 240000 480000 720000 960000 1200000 1440000 1680000 1920000 2160000 2400000 2640000 2880000 18,720,000 1,440,000 4,320,000 6,480,000 8,640,000 18,720,000
Multiply by Revenue per cart 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75
Total Revenues 1 1,620,000 3,240,000 4,860,000 6,480,000 8,100,000 9,720,000 11,340,000 12,960,000 14,580,000 16,200,000 17,820,000 19,440,000 126,360,000 9,720,000 24,300,000 38,880,000 53,460,000 126,360,000
Variable Costs (VC) 4 4 4 4 4 4 4 4 4 4 4 4
Amortization (2 year S/L) 2 6 6 6 6 6 6 6 6 6 6 6 6
Printing 3 0 0 0 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Replacement (even distribution) 4 56,970 56,970 56,970 56,970 56,970 56,970 56,970 56,970 56,970 56,970 56,970 56,970
Cart Rental (10% Revenue) 5 162,000 324,000 486,000 648,000 810,000 972,000 1,134,000 1,296,000 1,458,000 1,620,000 1,782,000 1,944,000
Mktg. Sales & Comm. 6 861,000 861,000 861,000 1,592,333 1,592,333 1,592,333 2,319,000 2,319,000 2,319,000 3,048,000 3,048,000 3,048,000
Grocery Store Operations 7 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000
Total VC 1,559,976 1,721,976 1,883,976 3,017,310 3,179,310 3,341,310 4,229,976 4,391,976 4,553,976 5,444,976 5,606,976 5,768,976 44,700,715 5,165,929 9,537,929 13,175,929 16,820,929 44,700,715
Contribution Margin (CM) 60,024 1,518,024 2,976,024 3,462,690 4,920,690 6,378,690 7,110,024 8,568,024 10,026,024 10,755,024 12,213,024 13,671,024 81,659,285 4,554,071 14,762,071 25,704,071 36,639,071 81,659,285
CM per Unit/Cart 0.25 3.16 4.13 3.61 4.10 4.43 4.23 4.46 4.64 4.48 4.63 4.75 4.36 3.16 3.42 3.97 4.24 4.36
Fixed Costs (FC) 0.00 0.00 0.00 120,000.00 120,000.00 120,000.00 240,000.00 240,000.00 240,000.00 360,000.00 360,000.00 360,000.00
Accounting & Audit 8 6,000.00 6,000.00 6,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Advertising (even distribution) 9 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75 9,843.75
Auto Lease 10 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Bank Charges 11 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67 166.67
Entertainment & Promotion 12 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Insurance 13 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34 8,333.34
Legal 14 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Management Fees 15 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167 24,167
Office & Sundry 16 5,000 5,000 5,000 3,000 3,000 3,000 4,000 4,000 4,000 5,000 5,000 5,000
Public Relations 17 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34 33,333.34
Rent 18 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Salaries & Benefits 19 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000
Stationary & Printing 20 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333
Telephone & Faxc 21 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Travel & Accommodation 22 10,000 10,000 10,000 2,000 2,000 2,000 3,000 3,000 3,000 45,000 45,000 45,000
Total FC 150,677 150,677 150,677 142,677 142,677 142,677 144,677 144,677 144,677 187,677 187,677 187,677 1,877,129 452,032 428,032 434,032 563,032 1,877,129
Total Expenses (VC + FC) 1,710,654 1,872,654 2,034,654 3,159,987 3,321,987 3,483,987 4,374,654 4,536,654 4,698,654 5,632,654 5,794,654 5,956,654 46,577,844 5,617,961 9,965,961 13,609,961 17,383,961 46,577,844
Net Operating Income (90,654) 1,367,346 2,825,346 3,320,013 4,778,013 6,236,013 6,965,346 8,423,346 9,881,346 10,567,346 12,025,346 13,483,346 79,782,156 4,102,039 14,334,039 25,270,039 36,076,039 79,782,156
Break Even Point in terms of carts 430,323 430,323
Break Even Point in terms of stores 2,152 2,152