Question

We will use the following information to create the profit model. Based on the data in the tables below, create the profit model for Donuts to Go and Muffins to Go. Profit = Total revenue X num. of units-Variable Expenses X num. of units-Fixed Expenses (what are the values for Total Revenue, Variable Expenses and Fixed Expenses?) Assume that each customer will buy one donut(or muffin) and one cup of coffee Come to class with both Profit Models written on a sheet of paper to hand in at the beginning of class. It will be part of your In-class activity grade for the day Time period Revenue: Cup of Coffee Revenue: Donut Donut ingredients per donunt) paper products: napkins, plates etc Insurance S4.00 S3.50 S0.60 per donut month $200.00 Maintenance & Repairs to equipment Marketing & Promotion: Advertising Coffee Coffee cups Payroll: Wages (Owner/ Manager) Payroll: Wages (per Employees) Donut and Coffee equipment rent Professional Fees: Accounting Professional Fees: Legal Powdered and Liquid Beverages Rent Previous research expense for Donuts advancements Supplies: Office Utilities month month per cup per cup month month month month month S0.00 $50.00 S0.25 S0.10 $2,500.00 $1,000.00 $500.00 $50.00 $25.00 S0.00 $1,000.00 $1,500.00 $25.00 $200.00 month month month

Answer 1

1. Total revenue- cup of coffe- 4$ donut- 3.5$ total- 7.5$ per unit. Variable exepenses- ingredients- 0.6$ coffee- 0.25$ coffee cups- 0.1$ total - 0.95$ per unit . fixed expenses- paper products and insurance- $200+marketing- $50+payroll- 3500$+professional fee- 50+25=75$+ rent-$1000+research-1500$+supplies-$25+ utilities-200$=6550$. 2. Muffin- total revenue- coffee 4+ muffin 5.5= 9.5$ per unit. Variable expenses-coffee0.25+ coffee cups- 0.10=0.35$ per unit. Vv fixed expenses- paper500+marketing 250+payroll 3500+professional fee75+rental 2000+ research 2000+supplies25+ utility 500=8850$.