Part I:
1. Based upon expected daily sales, what is the amount of weekly profit (loss) that the Cafe can expect to make? Ignore depreciation.
2. What is the weekly break-even sales volume & sales revenue, by product? Again, ignore depreciation.
3. If the Cafe wanted to generate weekly profits of $500, what is the weekly sales volume & sales revenue that they would need to achieve? Again, ignore depreciation.
Part II:
Assuming the up-front capital costs are to be depreciated utilizing the straight-line method of depreciation over 10 years with no salvage value, and that depreciation is included as a fixed costs, please calculate the following:
4. Based upon expected daily sales, what is the amount of weekly profit (loss) that the Cafe can expect to make?
5. What is the weekly break-even sales volume & sales revenue, by product?
6. If the Cafe wanted to generate weekly profits of $500, what is the weekly sales volume & sales revenue that they would need to achieve?
Attachment:- hw.doc