MARKET FORCES AND PRICE

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FIN302-ECO30144-IncomeStmt.xlsx
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ECO30144-MktForcesAndPrice

SNHU-FIN320-ECO30144-Market Forces and Price - For the Upcoming Calendar Year - INCOME STATEMENT
Note: Please use FIN302-ECO30144-DemandElasticity.xlsx for the Price/Volume modeling. Yellow cells are INPUTS.
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Full
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
AT LOW PRICES
Volume: # of Meals 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Avg Price of Meals $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 180.00
REVENUE 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 900,000
AT MEDIUM PRICES
Volume: # of Meals 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
Avg Price of Meals $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 240.00
REVENUE 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000
AT HIGH PRICES
Volume: # of Meals 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000
Avg Price of Meals $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 300.00
REVENUE 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 900,000
VARIABLE (I. E., MARGINAL) COSTS PER AVERAGE MEAL
Avg Labor Rate/Hour $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Avg Labor Minutes / Meal
Jeffrey Smith: Jeffrey Smith: Average minutes of work to prepare, serve or deliver, and clean up, per average meal (e. g. 30 minutes). 		30 30 30 30 30 30 30 30 30 30 30 30
Total Labor Costs / Meal $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00 $ 5.00
Ingredients $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50
Energy $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Other $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Variable Costs / Meal $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50 $ 14.50
GROSS $ MARGIN PER AVERAGE MEAL
At Low Prices $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
At Medium Prices $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ 5.50
At High Prices $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50 $ 10.50
TOTAL VARIABLE COSTS AT:
Low Prices $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 72,500 $ 870,000
Medium Prices $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 58,000 $ 696,000
High Prices $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 43,500 $ 522,000
FIXED COSTS
Facility Rent $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 72,000
M&E + F&F
Jeffrey Smith: Jeffrey Smith: M&E = Machinery & Equipment F&F = Furniture & Fixtures These costs might be lease payments (cash), or depreciation expense (noncash).		 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Mgmt+Admin, incl Ads 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Other - - - - - - - - - - - - -
TOTAL FIXED COSTS $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 102,000
TOTAL OPERATING COSTS
Low Prices $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ 972,000
Medium Prices $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 66,500 $ 798,000
High Prices $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 624,000
OPERATING INCOME
Low Prices $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (6,000) $ (72,000)
Medium Prices $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 13,500 $ 162,000
High Prices $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 276,000
GROSS OR CONTRIBUTION MARGIN %
Low Prices 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 % 3 %
Medium Prices 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 % 28 %
High Prices 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 % 42 %
OPERATING MARGIN %
Low Prices (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)% (8)%
Medium Prices 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 % 17 %
High Prices 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 % 31 %

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