BREAK EVEN ANALYSIS Break Even Calculation

Year 1 sx-vx-f = 0
Rent 310,600.00 sx-vx = f
Utilities 38,644.00 s = 80
Labor 594,750.00 v = 0.5s
Variable Costs (50% of Gross Sales 943,994.00 v = 40
Total Cost 1,887,988.00 80x - 40x = f
Average Retail per Cake 80.00 $943,994 = f
Cakes Sold per day 64.66 40x = $943,994
Gross Sales 1,887,988.00 x = 23599.85
Cakes Sold per year 23,600
Net Income 0.00
Margin 0.00% Growth Rate 13.19%

SALES GROWTH RATE ANALYSIS

Year 1 Year 2 Year 3 Year 4 Year 5
Rent (3% increase/year) 310,600.00 319,918.00 329,515.54 339,401.01 349,583.04
Utilities (3% increase/year) 38,644.00 39,803.32 40,997.42 42,227.34 43,494.16
Labor (5% increase/year) 594,750.00 624,487.50 655,711.88 688,497.47 722,922.34
COGS (50% of Gross Sales) 943,994.00 1,068,515.30 1,209,462.09 1,369,001.02 1,549,584.58
Total Cost 1,887,988.00 2,052,724.12 2,235,686.92 2,439,126.84 2,665,584.12
Average Retail per Cake 80.00 80.00 80.00 80.00 80.00
Cakes Sold per day 64.66 73.19 82.84 93.77 106.14
Cakes Sold per year 23,600 26,713 30,237 34,225 38,740
Gross Sales 1,887,988.00 2,137,030.61 2,418,924.18 2,738,002.05 3,099,169.16
Net Income 0.00 84,306.48 183,237.26 298,875.21 433,585.04
Profit Margin 0.00% 3.95% 7.58% 10.92% 13.99%
Start-up Cost Leftover ($1M Y1) $ 1,000,000.00 $ 915,693.52 $ 732,456.26 $ 433,581.05 $ (3.99)