FINANCIAL PLAN

Cost breakdown

The costs borne by the company are as follows:

- Rent paid for the room.
- Monthly payment to a service company (billboard, local press advertising)
- Deliveries of muffins, bangers and salads.
- Other costs such as energy, heating or air conditioning etc.
 

Break even point and gross margin

BASIC ASSUMPTIONS:

- Production is directly related to the output
- Fixed costs are always the same
- There is only one product
- Costs of sale per unit are permanent

FIXED COSTS (month)

Room rent (25 m2) 100,00
Services 110,00
Other costs (water, energy) 150,00
Total 360,00


VARIABLE COSTS (item)

muffin 0,15
banger 0,80
salads 0,30
paper bag 0,05
mustard/ketchup 0,20
Total 1,6

UNIT PRICE: 2,5

For specified figures see eclosure 7.2.
 

Balance sheet

Enclosed balance sheet (7.3.) covers all assets and liabilities the company has at the
day of starting a business.

ASSETS
Value of room 1100 zl
Value of machinery:
- Refrigerator 1500 zl
- Microwave 1200 zl
- Cupboard 700 zl
- Table 500 zl
- Fiscal cash-desk 1000 zl
- Chairs 700 zl
- Baseplate 200 zl
- Upholstery with glue 200 zl
- Hi-Fi Stereo 1000 zl
a total of 7000 zl
TOTAL 8100 zl
Bank account - company's money put as a reserve
LIABILITIES
Cash - 500 available on hand
Initial investments -  7000
 

Cash flow forecast

It provides information about future performance of the business and shows predictions for the next 3 months of 'EDEN' activity. The figures please find enclosed at the end of the plan (7.4.).

MONTH 1

We assume that in the first month of our activity sale will not be significant. The number of sold hot-dogs will propably equal to the level of BEP.

MONTH 2

In this month we are hoping for much better sales because of the advertising compaign in Sosnowiec.

MONTH 3

This month we prepare for another increase in sales, which is connected with even stronger advertising and also with a change in season.