Milkshake Case Analysis

Milkshake Case Analysis - Shakelicious Milkshakes...

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Shakelicious Milkshakes Cost-Volume-Profit Analysis Small (8oz) Sales Prices of milkshakes 7.00 Variable Cost per unit: Ingredients Cost Whole milk ($20 for 740oz) 0.07 0.14 Cream (25 for 128oz) 0.20 0.39 Sugar ($15 for 30 cups) 0.50 0.25 Premium vanilla ice cream ($30 for 600oz) 0.05 0.30 Flavorings 0.30 Flavor specialty straws 0.95 Cups -8oz ($350 for 1,000 cups) 0.35 0.35 Cups -12oz ($400 for 1,000 cups) 0.40 Total DM Cost per Unit 2.68 Fixed Costs: Shack rental 600.00 Supplies 150.00 Equipment: Industrial Milk Shake Maker 22.22 Industrial Refrigerator/Freezer 4.38 Countertops 12.50 Tables and benches 34.72 Annual Insurance 62.50 Sign: Shakelicious Milkshakes 12.50 Interest 23.73 Employees: 2 part-time 1,600.00 Total Monthly Fixed Costs 2,522.55
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Large (12oz) 10.00 0.20 0.59 0.38 0.45 0.50 0.95 0.40 3.46
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Small Large Total Sales after 10% owed to resort 2.52 5.40 7.92 Variable Cost 1.07 2.08 3.15 CM 1.45 3.32 4.77 Total Fixed Cost 2,522.55 Break Even Sales per Month 529 Milkshakes Small (40%) 212 Large (60%) 317 Small Large Total Sales 1,335.60 2,854.81 4,190.41 Variable Cost 567.26 1,098.67 1,665.93 CM 768.34 1,756.14 2,524.48 Total Fixed Cost 2,522.55 Net Income 1.93
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per unit per unit per unit per month per month
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  • Spring '14
  • total fixed cost

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