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    Case 2 - Lady M-2

    Uploaded by

    Joanne Lin
    Lady M is considering opening a store in the World Trade Center area. The document lists the construction costs, annual rent, utility costs, labor costs, average price of goods, and cost of goods sold (COGS). It then calculates the break-even point (BEP) in units which is 23,600 units. It also calculates the annual units that would need to be sold daily at 79 cakes to be feasible compared to the BEP of 65 cakes per day. The analysis suggests opening a store in the Bryant Park area could be feasible.

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    © All Rights Reserved
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    Case 2 - Lady M-2

    Uploaded by

    Joanne Lin
    84 views11 pages
    Lady M is considering opening a store in the World Trade Center area. The document lists the construction costs, annual rent, utility costs, labor costs, average price of goods, and cost of goods sold (COGS). It then calculates the break-even point (BEP) in units which is 23,600 units. It also calculates the annual units that would need to be sold daily at 79 cakes to be feasible compared to the BEP of 65 cakes per day. The analysis suggests opening a store in the Bryant Park area could be feasible.

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    Case 2_Lady M-2

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    Lady M is considering opening a store in the World Trade Center area. The document lists the construction costs, annual rent, utility costs, labor costs, average price of goods, and cost of goods sold (COGS). It then calculates the break-even point (BEP) in units which is 23,600 units. It also calculates the annual units that would need to be sold daily at 79 cakes to be feasible compared to the BEP of 65 cakes per day. The analysis suggests opening a store in the Bryant Park area could be feasible.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    84 views11 pages

    Case 2 - Lady M-2

    Uploaded by

    Joanne Lin
    Lady M is considering opening a store in the World Trade Center area. The document lists the construction costs, annual rent, utility costs, labor costs, average price of goods, and cost of goods sold (COGS). It then calculates the break-even point (BEP) in units which is 23,600 units. It also calculates the annual units that would need to be sold daily at 79 cakes to be feasible compared to the BEP of 65 cakes per day. The analysis suggests opening a store in the Bryant Park area could be feasible.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11
    At a glance
    Powered by AI
    The document discusses construction costs, annual costs and revenues, break even analysis, and profitability projections under different growth rate scenarios.

    The break even analysis considers construction costs, annual rent, utility costs, labor costs, sales revenue, cost of goods sold, and contribution margin to calculate break even point and profit.

    A higher growth rate leads to higher projected sales revenues and profits in future years, but it also increases costs at a higher rate. A balance must be struck for optimal profitability.

    Lady M 在 世貿大樓區域開店成本列表

    Construction costs $1,000,000


    Annual Rent $310,600
    Annual Escalation 3%
    Annual Utility Costs $38,644
    Annual Escalation 3%
    Annual Labor Costs $594,750
    Annual Escalation 5%
    Average Price of Goods $80
    COGS 50%

    Average
    COGS Price of Goods $80
    (為 Variable Costs, 因為隨著銷量增加，COGS會上升) $40
    Contribution Margin $40
    Fixed Costs Point
    Break-Even (Rent+Utility+Labor)
    (units) $943,994
    （要賣多少塊蛋糕才能打平 =FC/CM）
    （至少要達到多少收入才能打平 23599.85
    ＝BEP
    BEP units
    daily * Average Price of Goods）
    (units) $1,887,988
    （一天要賣多少塊蛋糕，假設全年無休） 64.65712329
    與 Bryant Park

    Revenue (July - December) $1,152,001


    Expected Annual Sales Revenue $2,304,002
    Average Price of Goods $80
    Annual Units Sold 28800.025
    Daily Units Sold 78.90417808

    Ans: BEP in 2014 will be 23600 units, which means need to break even in
    To see if it's feasible, we calculated the annual units sold at Bryant Park,
    Compare to 65 cakes/day in World Trade Center, we think it's feasible to

    一天大約要賣65塊蛋糕
    與 Bryant Park 地區銷售比較是否可行

    一天大約要賣79塊蛋糕

    which means need to break even in $1,887,988.


    annual units sold at Bryant Park, which is 79 cakes per day.
    de Center, we think it's feasible to run a store there.
    BEP Analysis for Optimistic Scenario (g=20%)
    2014 2015 2016 2017
    Annual Sales $1,887,988.00 $2,265,585.60 $2,718,702.72 $3,262,443.26
    Annual COGS $943,994.00 $1,132,792.80 $1,359,351.36 $1,631,221.63
    Contribution Margin $943,994.00 $1,132,792.80 $1,359,351.36 $1,631,221.63
    Fixed Cost
    Annual Rent $310,600.00 $319,918.00 $329,515.54 $339,401.01
    Utility $38,644.00 $39,803.32 $40,997.42 $42,227.34
    Annual Labor Costs $594,750.00 $624,487.50 $655,711.88 $688,497.47
    Profit $0.00 $148,583.98 $333,126.53 $561,095.81
    Cumulative Profit $1,884,272.74
    132,664 $265,566.43 $399,376.92

    Payback Period 3.92 答案是3.62


    0 1 2 3
    Initial Investment Uncovered $1,000,000 $851,416 $518,289 $ (42,806.32)
    0.9237094287
    假設2018年 Profit
    2018
    $3,914,931.92
    $1,957,465.96
    $1,957,465.96

    $349,583.04
    $43,494.16
    $722,922.34
    $841,466.42

    $534,767.12

    4
    $ (884,272.74)

    2018年 Profit 平均分攤


    BEP Analysis for Optimistic Scenario (g=5%)
    2014 2015 2016 2017
    Annual Sales $1,887,988.00 $1,982,387.40 $2,081,506.77 $2,185,582.11
    Annual COGS $943,994.00 $991,193.70 $1,040,753.39 $1,092,791.05
    Contribution Margin $943,994.00 $991,193.70 $1,040,753.39 $1,092,791.05
    Fixed Cost
    Annual Rent $310,600.00 $319,918.00 $329,515.54 $339,401.01
    Utility $38,644.00 $39,803.32 $40,997.42 $42,227.34
    Annual Labor Costs $594,750.00 $624,487.50 $655,711.88 $688,497.47
    Profit $0.00 $6,984.88 $14,528.55 $22,665.24
    Cumulative Profit $1,040,624.78
    5-year cumulative profit $75,609.73
    Payback Period 14.75 >5 years

    0 1 2 3
    Initial Investment Uncovered $1,000,000 $993,015 $978,487 $ 955,821.33
    2018 2019 2020 2021 2022 2023
    $2,294,861.21 $2,409,604.27 $2,530,084.49 $2,656,588.71 $2,789,418.15 $2,928,889.06
    $1,147,430.61 $1,204,802.14 $1,265,042.24 $1,328,294.36 $1,394,709.07 $1,464,444.53
    $1,147,430.61 $1,204,802.14 $1,265,042.24 $1,328,294.36 $1,394,709.07 $1,464,444.53

    $349,583.04 $360,070.53 $370,872.64 $381,998.82 $393,458.79 $405,262.55


    $43,494.16 $44,798.99 $46,142.96 $47,527.25 $48,953.06 $50,421.65
    $722,922.34 $759,068.46 $797,021.88 $836,872.98 $878,716.63 $922,652.46
    $31,431.07 $40,864.16 $51,004.76 $61,895.31 $73,580.60 $86,107.87

    4 5 6 7 8 9
    $ 924,390.27 $ 883,526.10 $ 832,521.34 $ 770,626.03 $ 697,045.43 $ 610,937.57
    2024 2025 2026 2027 2028
    $3,075,333.51 $3,229,100.18 $3,390,555.19 $3,560,082.95 $3,738,087.10
    $1,537,666.75 $1,614,550.09 $1,695,277.60 $1,780,041.48 $1,869,043.55
    $1,537,666.75 $1,614,550.09 $1,695,277.60 $1,780,041.48 $1,869,043.55

    $417,420.43 $429,943.04 $442,841.33 $456,126.57 $469,810.37


    $51,934.30 $53,492.33 $55,097.10 $56,750.02 $58,452.52
    $968,785.08 $1,017,224.33 $1,068,085.55 $1,121,489.83 $1,177,564.32
    $99,526.94 $113,890.38 $129,253.61 $145,675.06 $163,216.35

    10 11 12 13 14
    $ 511,410.62 $ 397,520.24 $ 268,266.63 $ 122,591.57 $ (40,624.78)
    $0.75
    假設 2027 年 Profit 平均分攤
    Total Profit 1,000,000
    Growth Rate 12.50% 答案是13.39%

    2014
    Annual Sales $1,887,988.00 2,123,987
    Annual COGS $943,994.00 0
    Contribution Margin $943,994.00
    Fixed Cost
    Annual Rent $310,600.00
    Utility $38,644.00
    Annual Labor Costs $594,750.00
    Profit $0.00

    Payback Period 5
    Growth rate (目標搜尋) 0.1319086728

    BEP Analysis for Optimistic Scenario


    2014 2015 2016 2017
    Annual Sales $1,887,988.00 $2,137,029.99 $2,418,922.78 $2,737,999.67
    Annual COGS $943,994.00 $1,068,515.00 $1,209,461.39 $1,368,999.84
    Contribution Margin $943,994.00 $1,068,515.00 $1,209,461.39 $1,368,999.84
    Fixed Cost
    Annual Rent $310,600.00 $319,918.00 $329,515.54 $339,401.01
    Utility $38,644.00 $39,803.32 $40,997.42 $42,227.34
    Annual Labor Costs $594,750.00 $624,487.50 $655,711.88 $688,497.47
    Profit $0.00 $84,306.18 $183,236.56 $298,874.02
    Cumulative Profit $1,000,000.00

    Payback Period 5.00


    0 1 2 3
    Initial Investment Uncovered $1,000,000 $915,694 $732,457 $ 433,583.25
    2018
    $3,099,165.58
    $1,549,582.79
    $1,549,582.79

    $349,583.04
    $43,494.16
    $722,922.34
    $433,583.25

    4
    $ (0.00)

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