Financial Projection - Expenses are to be budgeted so that...

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Financial Projection: This section will offer a financial overview of “Musical Kitchen” as it relates to the marketing activities. We will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy. Sales Forecast: The first two months will be used to get the restaurant up and running. By month three things will get busier. Sales will gradually increase with profitability being reached by the beginning of next year. Sales Forecast 2012 2013 2014 Sales Individuals 450000 650000 850000 Families 600000 830000 1000000 Parties 400000 675000 800000 Total sales 1450000 2155000 2650000 Direct Costs of Sales 2012 2013 2014 Individuals 70000 130000 210000 Families 110000 200000 300000 Parties 100000 150000 230000 Subtotal Direct Costs of Sales 280000 480000 740000 Expense Forecast
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Unformatted text preview: Expenses are to be budgeted so that we can put all the expenses under control. At the opening year the expense will be comparatively high then following years. After this year we will be able to reduce our expenses. Because then we will start to get profit. Now the expenses forecast is given billow: Expenses Forecast 2012 2013 2014 Rent or house payments (including taxes) 350000 400000 440000 Loan payments 100000 100000 100000 Utilities 80000 90000 100000 Automobile expenses 60000 70000 80000 Direct mail 20000 25000 28000 Contract with singer 140000 170000 200000 Music 150000 80000 70000 Adds 120000 150000 150000 Other 50000 70000 80000 Total Expenses 1070000 1155000 1248000 Percentage of Sales 73.79% 53.6% 47.09%...
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This note was uploaded on 03/24/2012 for the course BBA SBM taught by Professor Goa during the Spring '09 term at East West University, Chicago.

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Financial Projection - Expenses are to be budgeted so that...

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