General assumptions 1999 2000 2001 plan month 1 2 3

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Basic assumptions are presented in the table below. General Assumptions 1999 2000 2001 Plan Month 1 2 3 Current Interest Rate 8.00% 8.00% 8.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 30.00% 30.00% 30.00% 17
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Other 0 0 0 7.4 Key Financial Indicators Important benchmark data is presented in the chart below. 7.5 Break-even Analysis Break-even data is presented in the chart and table below. Break-even Analysis Monthly Units Break-even 7,294 Monthly Revenue Break-even $18,462 Assumptions: Average Per-Unit Revenue $2.53 Average Per-Unit Variable Cost $0.63 18
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Estimated Monthly Fixed Cost $13,847 7.6 Projected Profit and Loss Payroll Expense: The founder of Logictech cybercafe and stationary, Cale Bruckner, will receive a salary of $24,000 in year one, $26,400 in year two, and $29,040 in year three. Logictech cybercafe and stationary intends to hire six part-time employees by the end of year one at $5.75/hour and a full-time technician at $10.00/hour. Rent Expense: Logictech cybercafe and stationary is leasing a 1700 square foot facility at $.85/sq. foot. The lease agreement Logictech cybercafe and stationary signed specifies that we pay $2,000/month for a total of 36 months. At the end of the third year, the lease is open for negotiations and Logictech cybercafe and stationary may or may not re-sign the lease depending on the demands of the lessor. Utilities Expense: As stated in the contract, the lessor is responsible for the payment of utilities including gas, garbage disposal, and real estate taxes. The only utilities expense that Logictech cybercafe and stationary must pay is the phone bill generated by fifteen phone lines; thirteen will be dedicated to modems and two for business purposes. The basic monthly service charge for each line provided by US West is $17.29. The 13 lines used to connect the modems will make local calls to the network provided by Bellevue resulting in a monthly charge of $224.77. The two additional lines used for business communication will cost $34.58/month plus long distance fees. Logictech cybercafe and stationary assumes that it will not make more than $40.00/month in long distance calls. Therefore, the total cost associated with the two business lines is estimated at $74.58/month and the total phone expense at $299.35/month. In addition, there will be an additional utility expense of $800 for estimated EWEB bills. Marketing Expense: Logictech cybercafe and stationary will allocate $33,750 for promotional expenses over the first year. These dollars will be used for advertising in local newspapers in order to build consumer awareness. For additional information, please refer to section 5.0 of the business plan. Insurance Expense: Logictech cybercafe and stationary has allocated $1,440 for insurance for the first year. As revenue increases in the second and third year of business, Logictech cybercafe and stationary intends to invest more money for additional insurance coverage.
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  • Fall '19
  • Logictech cybercafe

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