 Daily revenue KPI of $5,000.

00 per day over 5 operational days per week

 Interstate expansion within 2 years
 Individual wholesale price of each donut is $3.50
 Individual retail price of each donut is $6.50
 Ingredient cost of each donut is $0.80 - $1.00
 Target of 20% overall profit
 Chef costs $40.00 per hour (based on 8hr working day)
 Delivery driver costs $25.00 per hour (based on 8hr working day)
 Daily administrative and management costs (5 days per week) $600.00 per day
.Rent and fixed over heads of $48,000.00 per year

E) Cost- Benefit Analysis

Apply your #1 ranking identified innovative business strategy (From Section 2a of this report) to current income and
expenses to determine compatibility with business goals and objectives

Revenue/ Income Description Daily Income Annual Income

(based on contract/ agreement value) (based on 5 operational days per week) (based on 52 weeks per year)
20 donuts @ $3.50 each $3,150.00 $819,000.00
x 45 Location
New increased sales (x x donuts @ per
donut cost x 45
TOTAL

Expenses Description Daily Expenses Annual Expenses

(based on 5 operational days per week) (based on 52 weeks per year)
Ingredients xxx xxx
Previous unit (20 donuts ) + NEW Donuts x
0.80
Chef Costs $40.00 per hr x 8 hrs x 4 Chefs $1,280.00 $332,800.00
Delivery driver $25.00 per hr x 8 hrs per day $200.00 $52,000.00
Admin and Management cost $600.00 $156,000.00
Rent and fixed over heads $184.61 $48,000.00
New strategy expense ( you have to add a xxx xxx
new expense which is related to your
strategy )
TOTAL

Firstly, there are 2 prices

invidual wholesale price = 3.50
individual retaul price = 6.50
You cannot take any price out of these two prices by yourself cause that’s your agreement.
let’s see how we calculated the Section B cost benefit analysis

Previously you sold to 20 donuts to 45 cafes each day @ 3.50 dollar.

So, 20 x 45= 900 donuts x 3.50 = 3150 ( not achieved)
How many you sold in total in a day? = 20 x 45= 900 donuts per day you sold

Let’s see how we calculated ingredients costs as I said its related to how many units you sold.
900 x 0.80= $720

Now
When you are working on your own which is Section E cost benefit analysis

3 things you will add

First increase the sales

2nd calculate the new daily ingredients expense
3rd Add a new expense which is related to your new strategy

Example
20 x 45= 900 donuts
Now new donuts 7 each day to 45 = 315
Total donuts you sold for new cost benefit analysis is 1215 donuts

Income
20 x 45= 900 donuts x 3.50 =3150
7 x 45=315 donuts x 3.50 = 1102.5
So total daily income is 4252.5 ( not achieved )

Lets see ingredients cost

900 x 0.80= $720

315 x 0.80= $252
So total daily total new expense is 972

You need decide how much you have to get as your new strategy expense.

After all calculation , You have to see whether you achieving the 5000 and over all 20 percent
profit . Please see learner guide to see how to calculate the profit .