Coffee Stand Example

Price per coffe cup 7.00

Fixed
Variable
Costs: Monthly
Coffee beans $ 0.12 $ 0.12
Rent of stand $ 2,000.00 $ 2,000.00
Coffee filters $ 0.06 $ 0.06
Cost of napkins $ 0.03 $ 0.03
Espresso machine $ 3,000.00 $ 50.00
Coffee maker $ 450.00 $ 37.50
Coffee grinder $ 200.00 $ 16.67
Counter area equipment $ 4,250.00 $ 118.06
Serving area equipment $ 1,500.00 $ 41.67
Coffee cups $ 0.04 $ 0.04

Totals: 0.25 2263.89

Contribution Margin 6.75 USD

Monthly Break-Even Point 335.39 cups
Yearly Break Even Point 4024.69 cups
 Economic Life in Economic Life in
Initial Investment
Years Months

$ 3,000.00 5 60
$ 450.00 1 12
$ 200.00 1 12
$ 4,250.00 3 36
$ 1,500.00 3 36
 Coffee Stand Example
Price per coffe cup 7.00

Variable Fixed Monthly

Costs:
Coffee beans $ 0.12 $ 0.12
Rent of stand $ 2,000.00 $ 2,000.00
Coffee filters $ 0.06 $ 0.06
Cost of napkins $ 0.03 $ 0.03
Espresso machine $ 3,000.00 $ 50.00
Coffee maker $ 450.00 $ 37.50
Coffee grinder $ 200.00 $ 16.67
Counter area equipment $ 4,250.00 $ 118.06
Serving area equipment $ 1,500.00 $ 41.67
Coffee cups $ 0.04 $ 0.04

Totals: 0.25 2263.89

Contribution Margin 6.75 USD

Monthly Break-Even Point 335.39 cups
Yearly Break-Even Point 4024.69 cups
 Initial Economic Life in Economic Life in
Investment Years Months

$ 3,000.00 5 60
$ 450.00 1 12
$ 200.00 1 12
$ 4,250.00 3 36
$ 1,500.00 3 36