W07 - Conversion Table Names:

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Regular Lemonade Fancy Lemonade Recipe Material Costs Unit Conversions

Recipe (Per Cup) (Per Cup) Sugar (10 lbs(pounds)) $5.88 108.87 tsp = 1 pound of sugar
1 Cup Water 1 Cup Water Lemons (1 box) $3.98 120 ice cubes = 1 bag
Lemon Lemon
0.5 (Squeezed) 0.5 Ice Cubes (1 bag) $2.50 12 lemons = 1 box of lemons
(Squeezed)
1.5 tsp Sugar 1.5 tsp Sugar Paper Cup (1 case) $10.48 6 tsp = 1 ounce
4 Ice Cubes 4 Ice Cubes Fruit (12 ounces) $4.98 768 tsp = 1 gallon syrup
2 tsp Flavor
1 Paper Cup Syrup Flavor Syrup (3 gallons) $38.68 240 fancy cups = 1 case
3 tsp Fruit Fancy Cup (1 case) $21.47 264 paper cups = 1 case
1 Fancy Cup

Regular Lemonade Recipe (1 Cup)

Item Quantity Purchase Purchase Quantity Ingredient Conversion Factor: Individual Cost Per Cup
Purchased Units Price Needed Per Units Purchase Units to Quantities
Lemonade Ingredient Units Available

Sugar 10 pounds $5.88 1.5 tablespoon 108.87 725.8 $0.01

Lemons 1 box $3.98 0.5 squeezed 12 240 $0.02
Ice Cubes 1 bag $2.50 4 cubes 120 30 $0.08
Paper Cups 1 case $10.48 1 cup 264 264 $0.04
Total Cost Per Cup $0.15

Fancy Lemonade Recipe (1 Cup)

Item Quantity Purchase Purchase Quantity Ingredient Conversion Factor: Individual Cost Per Cup
Purchased Units Price Needed Per Units Purchase Units to Quantities
Lemonade Ingredient Units Available

Sugar 10 pounds $5.88 1 tablespoon 108.87 725.8 $0.01

Lemons 1 box $3.98 0.5 squeezed 12 240 $0.02
Ice Cubes 1 bag $2.50 4 cube 120 30 $0.08
Fruit 12 ounces $4.98 3 tablespoon 6 24 $0.21
Flavor Syrup 3 gallons $38.68 2 tablespoon 768 1152 $0.03
Fancy Cups 1 case $21.47 1 cup 240 240 $0.09
Total Cost Per Cup ssssssss
W08 - Graphing Sales Data Names:

Average Number of Cups Sold per Lemonade Stand

Month Neighborhood Event High-end
January 254 6,854 10,254
February 568 8,541 10,542
March 985 10,528 10,254
April 1,858 12,584 11,525
May 2,985 14,010 12,524
June 3,854 16,585 13,250
July 2,858 18,955 13,589
August 2,985 20,584 13,558
September 3,521 14,586 12,958
October 2,515 11,584 11,901
November 1,958 9,514 13,201
December 689 7,102 11,255

Graph Area
 W10 - Break-Even Analysis Name:

Copy and paste your strategy here (from your Week 08 Management Framework Part 1)

1. Your Strategy

2. Your Market Neighborhood Neighborhood

Fixed Costs per Month
3. Annual Fixed Costs $4,872.00 Stand Rental $150.00
Variable Costs $0.30 Labor (wages) $256.00
Price $0.90 0 $0.00
5.
% of Demand 45%

Break Even Point*

*Using Excel, calculate the break even point to find out

7. how many units you'll need to sell to cover your fixed costs.
Make sure you put parentheses around price and variable
cost.

Neighborhood Yearly Cost & Revenue

$12,000 Monthly Price Adjusted

Demand Demand

254 114
$10,000
568 256

$8,000
985 443

1858 836

$6,000 2985 1,343

$

Annual Revenue 3854 1,734

Annual Costs
$4,000 2858 1,286

2985 1,343

$2,000 3521 1,584

2515 1,132
$0 1958 881
0 11,264
689 310
Units

Begin End

Total Units sold 0 11,264

Annual Costs $4,872 $8,251

Annual Revenue $0 $10,137

Net Profit $1,886

Profit Margin 19%

4. Price-Demand Graph (For Reference)

8. Reflection Question
Describe how graphing your cost and revenue lines made it easier to understand the profitability of your company. Include in your response how the
slope of those lines affected your profit.
Write your response here.
W11 - Profit Graph Name:

1. Cost Equation; Revenue Equation Neighborhood

Cost = Annual fixed cost + (Variable cost per cup) (Number of units sold)
$4,872.00 + $0.30 x
Revenue = (Price per cup of lemonade) (Number of Units Sold)
$0.90 x

2. Profit Equation
Profit = Revenue - Cost = $0.90 x - ( $4,872.00 + $0.30 x )

Hint: Remember you must distribute the minus to everything in

the parentheses.

3. Data Table
x y
43
44
45
46
47
48
49
4. Scatter Plot Chart Area
50
 4. Scatter Plot Chart Area

51
52
53
54
55
56
57
58
59 Reflection Question
60 You now have more data and experience than you had when you first created your
61 strategy. Does your price per cup you used on the Profit Graph match your strategy
(maximize sales vs. profit) and mission? Why or why not? Give at least one reason.
62
63 Write your response here.
64
65
66
67
68
69
70
71
72
 W12 - Neighborhood Income Statement Name:

Variable Cost per Cup of Lemonade: $0.30

1.
Price per Cup of Lemonade: $0.90

% of demand: 45%

Income Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Units (Cups of Lemonade) Sold 114 256 443 836 1,343 1,734 1,286 1,343 1,584 1,132 881 310 11263.5
2. Sales Revenue
3. Variable Costs
4. Gross Profit

Operating Expenses (fixed costs)

Stand Rental $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $1,800.00
Labor (wages) $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $3,072.00
0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Average Monthly Interest Expense $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
5. Total Operating Expenses

Net Income
6.

Loan Calculations 11. Reflection Questions

7. Loan Amount (pv) $4,872.00 What effect does the length of a loan (Loan Term) have on monthly payments and interest?
Write your response here.
8. Click on the yellow cell to select from the drop
Loan Term or Number of Years down. See the optons in the table below.
Annual Interest Rate 0.0%
9.
Payments per Year 12
Period Rate (rate) =annual interest rate/number of payments per year
Total Number of Payments (nper) =number of payments per year*number of years
Monthly Payment =use the PMT function = PMT(rate,nper,pv)
10.
Loan Amount with Interest =monthly payment*nper
Interest Expense =loan amount with Interest + loan amount
Average Monthly Interest Expense =interest Expense/nper What is the best loan option for your lemonade stand? Why?
Write your response here.
Small Business Loan Information
Loan Term (number of Years) Payments per Term (year) Annual Interest Rate
1 12 4.5%
2 12 5.6%
3 12 6.2%