We will use the following information to create the profit model. Based on the data in...

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Finance

We will use the following information to create the profitmodel. Based on the data in the tables below, create the profitmodel for Donuts to Go and Muffins to Go.
Profit = Total revenue X num. of units – Variable Expenses Xnum. of units – Fixed Expenses
(what are the values for Total Revenue, Variable Expenses andFixed Expenses?)
Assume that each customer will buy one donut(or muffin) andone cup of coffee.
Come to class with both Profit Models written on a sheet ofpaper to hand in at the beginning of class. It will be part of yourIn-class activity grade for the day.
Donuts to Go
Time period
Revenue: Cup of Coffee
$4.00
Revenue: Donut
$3.50
Donut ingredients per donunt)
per donut
$0.60
paper products: napkins, plates etc
Insurance
month
$200.00
Maintenance & Repairs to equipment
month
$0.00
Marketing & Promotion: Advertising
month
$50.00
Coffee
per cup
$0.25
Coffee cups
per cup
$0.10
Payroll: Wages (Owner/ Manager)
month
$2,500.00
Payroll: Wages (per Employees)
month
$1,000.00
Donut and Coffee equipment rent
month
$500.00
Professional Fees: Accounting
month
$50.00
Professional Fees: Legal
month
$25.00
Powdered and Liquid Beverages
$0.00
Rent
month
$1,000.00
Previous research expense for Donuts advancements
$1,500.00
Supplies: Office
month
$25.00
Utilities
month
$200.00
Muffins to Go
Time period
Revenue: Cup of Coffee
$4.00
Revenue: Muffin
$5.50
Muffin ingredients (per muffin)
per donut
$1.20
paper products: napkins, plates etc
Insurance
month
$500.00
Maintenance & Repairs to equipment
month
$0.00
Marketing & Promotion: Advertising
month
$250.00
Coffee
per cup
$0.25
Coffee cups
per cup
$0.10
Payroll: Wages (Owner/ Manager)
month
$2,500.00
Payroll: Wages (per Employees)
month
$1,000.00
Muffin and Coffee equipment rent
month
$2,500.00
Professional Fees: Accounting
month
$50.00
Professional Fees: Legal
month
$25.00
Powdered and Liquid Beverages
$0.00
Rent
month
$2,000.00
Previous research expense for Muffin advancements
$2,000.00
Supplies: Office
month
$25.00
Utilities
month
$500.00

Answer & Explanation Solved by verified expert

3.8 Ratings (646 Votes)

Lets Assume for the above we have 1500 customer Per Month for both the products I have compute Profit Model for Donuts and Muffins both by taking 1500 Customers reached to us Donuts Unit price Unit Total Cup of Coffee 400 1500 6000 Donuts 350 1500 5250 Revenue 11250 Donuts ingredient 060 1500 900 See Answer

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We will use the following information to create the profitmodel. Based on the data in the tables below, create the profitmodel for Donuts to Go and Muffins to Go.Profit = Total revenue X num. of units – Variable Expenses Xnum. of units – Fixed Expenses(what are the values for Total Revenue, Variable Expenses andFixed Expenses?)Assume that each customer will buy one donut(or muffin) andone cup of coffee.Come to class with both Profit Models written on a sheet ofpaper to hand in at the beginning of class. It will be part of yourIn-class activity grade for the day.Donuts to GoTime periodRevenue: Cup of Coffee$4.00Revenue: Donut$3.50Donut ingredients per donunt)per donut$0.60paper products: napkins, plates etcInsurancemonth$200.00Maintenance & Repairs to equipmentmonth$0.00Marketing & Promotion: Advertisingmonth$50.00Coffeeper cup$0.25Coffee cupsper cup$0.10Payroll: Wages (Owner/ Manager)month$2,500.00Payroll: Wages (per Employees)month$1,000.00Donut and Coffee equipment rentmonth$500.00Professional Fees: Accountingmonth$50.00Professional Fees: Legalmonth$25.00Powdered and Liquid Beverages$0.00Rentmonth$1,000.00Previous research expense for Donuts advancements$1,500.00Supplies: Officemonth$25.00Utilitiesmonth$200.00Muffins to GoTime periodRevenue: Cup of Coffee$4.00Revenue: Muffin$5.50Muffin ingredients (per muffin)per donut$1.20paper products: napkins, plates etcInsurancemonth$500.00Maintenance & Repairs to equipmentmonth$0.00Marketing & Promotion: Advertisingmonth$250.00Coffeeper cup$0.25Coffee cupsper cup$0.10Payroll: Wages (Owner/ Manager)month$2,500.00Payroll: Wages (per Employees)month$1,000.00Muffin and Coffee equipment rentmonth$2,500.00Professional Fees: Accountingmonth$50.00Professional Fees: Legalmonth$25.00Powdered and Liquid Beverages$0.00Rentmonth$2,000.00Previous research expense for Muffin advancements$2,000.00Supplies: Officemonth$25.00Utilitiesmonth$500.00