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Coffee Stand Business Cost Analysis, Essays (university) of Business Ethics

Adnan Menderes UniversityBusiness Ethics

An in-depth analysis of the costs involved in running a coffee stand business. It includes both variable and fixed costs, such as the price per coffee cup, coffee beans, rent, equipment, and labor. The document also calculates the contribution margin, monthly and yearly break-even points, and economic life of the stand.

What you will learn

  • What is the monthly break-even point for the coffee stand business?
  • What are the variable costs involved in running a coffee stand business?
  • What is the economic life of the coffee stand business in years and months?

Typology: Essays (university)

2018/2019

Uploaded on 10/03/2019

hasan-karadas
hasan-karadas 🇹🇷

2 documents

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Coffee Stand Example
Price per coffe cup 7.00
Variable
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
Fixed
Monthly
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Coffee Stand Example

Price per coffe cup 7. Variable Costs:

Coffee beans $ 0.12 $ 0.

Rent of stand $ 2,000.00 $ 2,000.

Coffee filters $ 0.06 $ 0.

Cost of napkins $ 0.03 $ 0.

Espresso machine $ 3,000.00 $ 50.

Coffee maker $ 450.00 $ 37.

Coffee grinder $ 200.00 $ 16.

Counter area equipment $ 4,250.00 $ 118.

Serving area equipment $ 1,500.00 $ 41.

Coffee cups $ 0.04 $ 0.

Totals: 0.25^ 2263. Contribution Margin (^) 6.75 USD Monthly Break-Even Point (^) 335.39 cups Yearly Break-Even Point (^) 4024.69 cups Fixed Monthly

Initial Investment $ 3,000.00 5 60 $ 450.00 1 12 $ 200.00 1 12 $ 4,250.00 3 36 $ 1,500.00 3 36 Economic Life in Years Economic Life in Months

Coffee Stand Example

Price per coffe cup 7. Variable Fixed Monthly Costs:

Coffee beans $ 0.12 $ 0.

Rent of stand $ 2,000.00 $ 2,000.

Coffee filters $ 0.06 $ 0.

Cost of napkins $ 0.03 $ 0.

Espresso machine $ 3,000.00 $ 50.

Coffee maker $ 450.00 $ 37.

Coffee grinder $ 200.00 $ 16.

Counter area equipment $ 4,250.00 $ 118.

Serving area equipment $ 1,500.00 $ 41.

Coffee cups $ 0.04 $ 0.

Totals: 0.25 2263. Contribution Margin (^) 6.75 USD Monthly Break-Even Point (^) 335.39 cups Yearly Break-Even Point (^) 4024.69 cups

Initial Investment Economic Life in Years Economic Life in Months