How to open a new business? Dim sum shop as an Example

SUN DEN SHOP ~ DIM SUM Andrea Parma, Dalia Hassan, Doaa Abdou, Can Le, Rabbia Khan

點心

Mission

We are committed to offer healthy and tasty dim sum for all.

Motto: Eat more, care less

Product Line

Type Item

Vegetarian Steamed Mushroom Bun

Chicken Steamed Chicken Bun

Shrimp/pork Steamed Shrimp Bun

Beverages Hot Green tea

Strategic positioningOur target customers are students, working

professionals, and families.

Our strategy is to offer gourmet Dim Sum that is healthy, delicious, and appealing to the public taste.

Why we are different• We are a to-go shop offering handmade

gourmet food.• Nearest to-go shop serving the same

product is half a mile away.• We are the earliest dim sum shop to open

in the morning (competitor opens at 11 am)

Source: https://www.orderaheadapp.com/places/dumpling-express--berkeley-ca

Incorporation & Business License

Cost of incorporation: (in Delaware)a. $400 Filing feeb. $50 expedite Feec. $50 Federal Exd. $300 per year Renewal

Business License fee in Berkeleya. $50 One time feeb. $51 Permit taxc. $24 filing feed. $1 Handicapped Information

• Health Depattment permit $598• Fire inspection fees: $93.50 per quarter hour. Initial takes 1 hour and cost $374Building Department Permit Fee: estimate to be $2000

Our business will be incorporated as S corporation because it is considered a separate entity which our financial liabilities.

Location: 2312 Fulton Street, Berkeley CA 94704

Location - Demographics (2015)Population 1-mile 3-mile 5-mileTotal Population 58,815 213,507 380,759Households 22,032 88,176 161,712Total Daytime Population 106,671 271,700 471,359

Income 1-mile 3-mile 5-mileHousehold Income: Median 48,193 68,909 65,453Household Income: Average 74,548 104,807 101,647

Retail Sales Volume 1-mile 3-mile 5-mileRestaurant Expenditures 23,197,889 105,347,289 191,646,152

Location Advantages• Brand new construction on the NW corner of Fulton and Durant

• One block to UC Berkeley Campus with 45,000 daytime population

• One block off Shattuck - downtown Berkeley’s main commercial street

• Close to downtown Bart with over 22,000 daily riders

Rent & floor plan

KitchenServing Area

Toilet

Space 1500 Sq ft

Rate $ 2.75 per Sq. ft.

Total Rent Per Month $4,125

Cash ONLYToilet for

Staff ONLY

Equipments

Toilet & cleaning equipmentItem Total price Sink & toilet $ 332.90 Sanitation dispensers $ 78.48 Ceiling lighting $ 72.00 Hand Dryer $ 270.00 Caution Wet Floor $ 11.58 Brushes, brooms, Mop system $ 59.73 Total Cost $ 824.69

Serving areaItem Total price

Service counters & shelves $ 1,547.00 Tables & chairs $ 198.00 Hot food display $ 510.95 Cash registeration $ 589.00 Microwave oven $ 89.10 lighting & Led Open sign $ 374.79 Dispensers (napkin, honey) $ 208.11 Water boiler $ 134.08 Fans $ 341.00 Chafing Dish $ 166.99 Total Cost $ 4,159.02

Equipments

Total cost of Equipment:

$46,885

KitchenItem Total price Flour Mixers & mixing bowls $ 12,010.19 Steaming Equipment $ 6,300.80 Refrigerator $ 2,045.00 Stove top $ 1,630.00 Hoods& fans $ 6,540.55 work tables& shelving $ 8,169.95 Cleaver &knife set& boards $ 469.17 Meat grinder $ 2,032.06 Storage Containers $ 245.57 Kitchen cart $ 524.00 Wok sets $ 67.83 Sink & Faucet $ 961.26 Sanitation $ 296.23 Sccales & thermometer $ 180.59 Trash cans $ 79.98 Ceiling lighting units $ 347.80 Total Cost $ 41,900.98

Equipments

Direct Materials - Dim Sum BunsShrimp & Pork (24 piece)Item per lb. Pricechopped pork 0.500 $2.07can shrimp 0.250 $2.11salt 0.031 $0.03green onions (2) 0.300 $0.12ginger root 0.031 $0.27light soy sauce 0.031 $0.05rice wine vinegar 0.031 $0.09vegetable oil 0.031 $0.02white sugar 0.031 $0.03water 0.047 0Active dry yeast 0.03 $0.14White sugar 0.03 $0.03All-purpose flour 0.13 $0.07water 0.13 $0.00warm water 0.25 $0.00all purpose flour 0.75 $0.39Salt 0.01 $0.01White sugar 0.06 $0.07Vegetable oil 0.03 $0.02Baking powder 0.02 $0.07Total $5.57 Cost per 1 bun $0.23

Vegan (24 piece)Item per lb. Pricegarlic 0.012 $0.10fresh ginger 0.020 $0.17Shitake mushroom 0.600 $9.60rice wine vinegar 0.125 $0.34sweet chilli sauce 0.125 $0.41low-salt soy sauce 0.125 $0.21green onions (6) 0.018 $0.01fresh red chilli (2) 0.008 $0.00sesame oil 0.063 $0.34Active dry yeast 0.03 $0.14White sugar 0.03 $0.03All-purpose flour 0.13 $0.07water 0.13 $0.00warm water 0.25 $0.00all purpose flour 0.75 $0.39Salt 0.01 $0.01White sugar 0.06 $0.07Vegetable oil 0.03 $0.02Baking powder 0.02 $0.07Total $11.96 Cost per 1 Bun $0.50

Chicken (24 piece)Item per lb. PriceChicken mince 1.650 $2.48Garlic clove (3) 0.009 $0.07Brown sugar 0.094 $0.18Grated ginger 0.094 $0.80Oyster sauce 0.188 $0.65Soy Sauce 0.094 $0.16Sesame Oil 0.188 $1.02Active dry yeast 0.03 $0.14White sugar 0.03 $0.03All-purpose flour 0.13 $0.07water 0.13 $0.00warm water 0.25 $0.00all purpose flour 0.75 $0.39Salt 0.01 $0.01White sugar 0.06 $0.07Vegetable oil 0.03 $0.02Baking powder 0.02 $0.07Total $6.13 Cost per 1 Bun $0.26

Direct Materials - Beverages

Green teaItem Quantity PriceCompostable PLA paper cups 1 unit $0.09 White Hot Paper Cup lid 1 unit $0.03 Coffee Jacket / Coffee Sleeve 1 unit $0.04 Green tea 1 tbsp. $0.12 Cost per 1 cup $0.28

Labor2 Full- Time Employees 15 Part - Time Employees

7 hours/weekday

Full - Time5:00 -

9:00am9:00am - 1:00pm

1:00 - 5:00pm

Total working hours

Monday 1 2 1 14Tuesday 1 2 1 14Wednesday 1 2 1 14Thursday 1 2 1 14Friday 1 2 1 145 hours/weekend

Full – Time5:00 -

9:00am9:00am - 1:00pm

1:00 - 5:00pm

Total working hours

Saturday 1 1 0 5Sunday 1 1 0 5

4 hours/weekday

Part – Time5:00 -

9:00am9:00am 1:00pm

1:00 - 5:00pm

5:00 - 9:00pm

Total working hours

Monday 2 1 1 3 24.5 Tuesday 2 1 1 3 24.5Wednesday 2 1 1 3 24.5Thursday 2 1 1 3 24.5Friday 2 1 1 3 24.5

5 hours/weekend

Part - time5:00 -

10:00am10:00am -

3:00pm 3:00 - 8:00pmTotal working

hoursSaturday 5 2 2 44.5 Sunday 5 2 2 44.5

EmployeeTotal hours/ week

Total hours/ month working hour Basic salary Salary +tax month

Part-time 211.5 846 $ 13 $ 10,998 $ 11,941.10 Full-time 80 320 $ 25 $ 8,000 $ 8,622.49 Total $ 18,998 $ 20,563.59

Labor Full - Time Cost# of employees 2Basic Salary $ 8,000 FICA

Social Security Tax $ 59.52 MediCare Tax $ 13.44

Unemployment insurace tax $ 8.42 Employment Traning Tax $ 0.25 State Disability insurance $ 33.25 Medical insurance $ 118.94 Dental insurance $ 42.48 401 K $ 240.00 Workers comp insurance $ 106.19 Total $ 8,622.49

Part - Time CostBasic Salary per hour $ 13 # of hours 846.00 Total Basic Salary $ 10,998 FICA

Social Security Tax $ 681.88 MediCare Tax $ 153.97

Unemployment insurace tax $ 21.55 Employment Traning Tax $ 0.63 State Disability insurance $ 85.07 Total $ 11,941.10

Overhead - variable (monthly Material)Kitchen

Item # of unitsTotal price

Disposable Aprons 10 $19.90Trash bag 2 $153.98Exam Gloves 3 $59.97Wax paper for the buns 0.05 $15.91Paper towels 1 $27.69Round Dish Brush Scrubber, 9" 2 $12.66Continental Scrubber Sponge 1 $33.65Cleaner Degreaser Disinfectant 1 $39.96Purell NXT Instant Hand Sanitizer Refill 1 $76.99Total Kitchen $440.71

Serving area

Item # of units Total priceHoney 1 $15.20Paper bags & boxes for serving 5 $35.00Tall-fold dispenser Napkin 1 $16.997 1/2" Unwrapped Black Stirrer 1 $2.49Total Serving area $69.68

Restroom

Item # of units Total price1/2 Fold Toilet Seat Cover White 3 $96.00Sanitary Napkin Receptacle Bags 3 $11.97Wall-Mount Dispenser 0.5 $9.00Toilet Paper 0.5 $28.45Total Restroom $145.42

Cleaning utilitiesItem # of units Total priceMonogram Blue Griddle Pad Holder 0.5 $4.60Acid Bathroom 0.5 $3.75Heavy Duty Microfiber Replacement Pad 18" 3 $21.00Total Cleaning $29.35 Total Overhead Material/ month

$685

Overhead (monthly)

Variable overhead

Variable Overhead materials $ 685 Water/ Sewage $ 300

Gas $ 200

Electricity $ 1,300

Total $ 2,485

Fixed Overhead MonthlySalary & taxes - 2 Full time $ 8,622 Rent $ 4,125 Business Liability Insurance $ 117 Insurance on Equipments $ 500 Insurance for fire and flood $ 33 Worker’s comp insurance $ 500 Waste management $ 60 Security/camera $ 100 Depreciation $ 781 total $ 14,839

Utilities estimations are based on information from an interview with a Dim Sum restaurant owner.

Customer Flow7:

00 -

8:00

8:00

- 9:

00

9:00

- 10

:00

10:0

0 - 1

1:00

11:0

0am

- 1.

..

12:0

0 - 1

:00

1:00

- 2:

00

2:00

- 3:

00

3:00

- 4:

00

4:00

- 5:

00

5:00

- 6:

00

6:00

- 7:

00

7:00

- 8:

000

8:00

- 9:

0000

100

200

300

400Average Pedestrian flow /day Customers servied Weekday

# of

cus

tom

ers/

hou

r

Average # of pedestrian/ hour = 159 pedestrian

Based on our field trip, during the weekdays we will serve 30% of the pedestrian flow while during weekends we will serve 20% only.

Operating hours/day

Operating min/day

time cst take to come in and out (min)

Total # of cst /day

Total # of cst/hour

Total # of buns/hour

% of tea/hour

Total # of tea /hour

Total # of items sold /hour

Total # of items sold/day

Total # of items sold/month

11 660 4 165 15 60 15%

9

69 759 22,770

Pricing (Cost Based - Breakeven)Monthly cost

Variable costdirect material $ 7,410

direct labor $ 11,941 manufacturing overhead $ 2,485 selling and administrative (0.5%) $ 191 Total Variable Cost $ 22,027

Fixed costmanufacturing overhead $ 14,839 selling and administrative $ 150 Total Fixed Cost $ 14,989Total Cost $ 37,017

itemVariable cost per item Pricing

contribution margin sales mix weight

vegan $1.14 $ 2 $ 0.86 30% $ 0.26 chicken $0.90 $ 1.6 $ 0.70 30% $ 0.21 shrimp $0.87 $ 1.5 $ 0.63 27% $ 0.17 tea $0.92 $ 1.5 $ 0.58 13% $ 0.08 Total 100% $ 0.71

item breakeven point/ month Break even $ Sales/monthVegan 6,242 $12,484chicken 6,251 $ 10,002 shrimp 5,626 $ 8,439 tea 2,718 $ 4,077 Total(Break even) 20,837 $ 35,001

Estimated Sales 22,770 $ 38,249

Pricing (Profit)

Our Price is more expensive for three reasons:• The quality of our raw material is higher.• Our Vegan buns are totally differentiated form theirs.• They sell per package (4,8,12 pieces), but we sell per piece.

Competitors’ average price $ 0.80Our average price $ 1.70Difference $ 0.90

Dumpling Express Steamed menu

Contribution income statementSales $ 38,249 Variable cost $ (22,028)Contribution Margin $ 16,221 Fixed cost $ (14,989) Profit $ 1,232 Total profit/ # of units $ 0.05 Estimated Profit Margin 3%ROA 3%

Financial Statements

Initial CostInitial cost first year Comments CostTotal equipment cost $ 46,885 Place Decorations 1,500 SQ ft *$50/ SQ ft $ 75,000 Rental deposit 2months $ 8,250 4 months rent 4months $ 16,500 Full time Salary 4months $ 34,490 Part- time salary 3months 50% full capacity $ 17,912 Overhead materials 3months 50% full capacity 75% Cash $ 771 Raw material for the first 3 months 3months 50% sales 75% Cash $ 8,336 Utilities 4months 50% full capacity $ 4,970 insurance 6months $ 6,900 waste, security 4months $ 640 Selling expenses 4months 125% full capacity $ 1,706 Contingency/ beginning Advertisement 10% $ 22,236 Total initial cost for the business $ 244,596

Financial Statements – Cash Flow

Variable overhead % 25% 25% 50% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100%Sales% 0% 25% 50% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cashflow 1st year Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17TotalStarting cash $244,596 $98,851 $88,428 $82,109 $79,892 $81,779 $83,202 $84,626 $86,049 $87,472 $88,896 $90,319 $91,742 Direct materials 75% $0 ($1,389) ($2,779) ($4,168) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($58,355)Direct materials 25% $0 $0 ($463) ($926) ($1,389) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($17,599)Direct Labour $0 ($2,985) ($5,971) ($8,956) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($125,382)Variable overhead ($621) ($621) ($1,243) ($1,864) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($26,094)Sales (cash only) $0 $9,562 $19,124 $28,686 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $401,611 Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)Startup cost ($130,135) Ending Cash $98,851 $88,428 $82,109 $79,892 $81,779 $83,202 $84,626 $86,049 $87,472 $88,896 $90,319 $91,742 $93,166 $93,166

Financial Statements – Cash FlowVariable overhead % 100% 100% 100% 100% 100% 100% 101% 101% 101% 101% 101% 101% 101%Sales% 100% 100% 100% 100% 100% 100% 101% 101% 101% 101% 101% 101% 101%

Cashflow 2nd year Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18Total 2018Starting cash $91,742 $93,166 $94,589 $96,013 $97,436 $98,859 $100,283 $101,889 $103,476 $105,064 $106,651 $108,239 $109,826 Direct materials 75% ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($67,080)Direct materials 25% ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,871) ($1,871) ($1,871) ($1,871) ($1,871) ($1,871) ($22,341)Direct Labour ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($144,129)Variable overhead ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($29,996)Sales (cash only) $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,631 $38,631 $38,631 $38,631 $38,631 $38,631 $38,631 $461,661 Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)Startup cost $0 Ending Cash $93,166 $94,589 $96,013 $97,436 $98,859 $100,283 $101,889 $103,476 $105,064 $106,651 $108,239 $109,826 $111,414 $111,414

Variable overhead % 101% 101% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102%Sales% 101% 101% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102%

Cashflow 3rd year Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19Total 2019Starting cash $109,826 $111,414 $113,001 $114,772 $116,523 $118,275 $120,027 $121,778 $123,530 $125,281 $127,033 $128,785 $130,536 Direct materials 75% ($5,613) ($5,613) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($67,969)Direct materials 25% ($1,871) ($1,871) ($1,871) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($22,638)Direct Labour ($12,061) ($12,061) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($146,040)Variable overhead ($2,510) ($2,510) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($30,393)Sales (cash only) $38,631 $38,631 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $467,781 Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)Startup cost Ending Cash $111,414 $113,001 $114,772 $116,523 $118,275 $120,027 $121,778 $123,530 $125,281 $127,033 $128,785 $130,536 $132,288 $132,288

Financial Statement – Income StatementIncome Statement First year - 2017 Sales $401,611 COGS

Direct Material ($75,954) Variable Overhead ($8,222) ($84,175)

Total Gross Profit $317,435 Operating Expenses

Salaries - 2 Full time ($103,470) Direct Labor - Part time Salary ($125,382) Rent ($49,500) Utilities ($17,872) Insurances ($13,800) Waste management ($720) Security/camera ($1,200) Depreciation ($9,377)

Total Operating Expenses ($321,321) Net Icome Before Taxes ($3,885) Taxes 0% $0 Net Income (Loss) ($3,885)

Our Income Statement in the first year shows net loss ($3,885) due to the first 3 months operation.

Financial Statement – Income StatementIncome Statement 2nd year - 2018 Sales $461,661 COGS

Direct Material ($89,421)Variable Overhead ($8,222) ($97,643)


Salaries - 2 Full time ($103,470)Direct Labor - Part time Salary ($143,293)Rent ($49,500)Utilities ($21,774)Insurances ($13,800)Waste management ($720)Security/camera ($1,200)Depreciation ($15,003)

Total Operating Expenses ($348,760) Net Icome Before Taxes $15,258 Taxes 0% $0 Net Income $15,258

Income Statement 3rd year - 2019 Sales $467,781 COGS

Direct Material ($90,607)Variable Overhead ($8,222) ($98,829)


Salaries - 2 Full time ($103,470)Direct Labor - Part time Salary ($143,293)Rent ($49,500)Utilities ($22,172)Insurances ($13,800)Waste management ($720)Security/camera ($1,200)Depreciation ($9,002)

Total Operating Expenses ($343,157) Net Icome Before Taxes $25,796 Taxes 0% $0 Net Income $25,796

Financial Statement – Balance Sheet Dim Sum Project Balance Sheet December 2017 Assets Liabilities and Stockholders' Equity Current Assets Current Liabilities Cash $ 93,166 Accounts Payable Accounts receivable net $ - Wages Merchandise Inventory $ - Full-time $ 93,166 Part-time Fixed assets Taxes PayableEquipment $ 130,135 Buildings (Rent Deposit) Less accumulated depreciation $ (9,377) Stockholders'equity Net Fixed Assets $ 120,758 Capital Stock $ 244,596 Retained earnings VOH $ (26,715) FOH $ (194,856)Total Assets $ 213,924 DM $ (75,954) DL $ (125,382) Dep $ (9,377) SALES $ 401,611 $ 213,924

Financial Statement – Balance Sheet

Dim Sum Project Balance Sheet December 2018 Assets Liabilities and Stockholders' Equity Current Assets Current Liabilities Cash $ 111,414 Accounts Payable Accounts receivable net $ - Wages Merchandise Inventory $ - Full-time $ 111,414 Part-time Fixed assets Taxes Payable Equipment $ 130,135 Buildings (Rent Deposit) Less accumulated depreciation $ 24,380 Stockholders‘ equity Net Fixed Assets $ 105,755 Capital Stock $ 213,924 Retained earnings VOH $ (29,996) FOH $ (179,867)Total Assets $ 217,169 DM $ (89,421) DL $ (144,129) Dep $ (15,003) SALES $ 461,661 $ 217,169

Dim Sum Project Balance Sheet December 2019 Assets Liabilities and Stockholders' Equity Current Assets Current Liabilities Cash $ 132,288 Accounts Paybale Accounts receivable net $ - Wages

Merchandise Inventory $ - Full-time

$ 132,288 Part-time

Fixed assets Taxes Payable Equipment $ 130,135 Buildings (Rent Deposit) Less accumulated deprecaiiton $ 33,382 Stockholders‘ equity Net Fixed Assets $ 96,753 Capital Stock $ 217.169 Retained earnings VOH $ (30,393) FOH $ (179,867)Total Assets $ 229,040 DM $ (90,607) DL $ (146,040) Dep $ (9,002) SALES $ 467,781 $ 229,041

Exit Strategy (Plan)

first 3 months of our operation

• Don’t increase production.

• decrease price (1 cent per bun)

• Promotions (selling packages)

After 3 months• Decrease our selling price

• Operate by 25% of our full capacity to decrease variable cost.

After 6 months

• Pay lease cancellation penalty and Sell equipment

• Resolve financial obligations (debts, close bank account)

• File dissolution documents, cancel registration and permits.

• Comply with employment and labor law.

• Maintain records

If we failed in reaching the breakeven point:

Project EvaluationIt is risky to implement this project for the following reasons:

• The expected profit is very low.• It is hard for our selling prices to compete with the competitors prices.• Our current limited product line is unlikely to survive in the market.

Recommendations:

• Improve the product line by adding various types of Dim Sum.• Cut the cost of direct material and direct labor.• Rent a cheaper shop.

Rent Details

Space 1500 Sq ft

Rate $ 2.75 per Sq ft

Total Lease Rental Per Month $4,125

Rental Deposit 2 Months

Penalty for cancellation Losing depositLease Duration 1 year

Fire marshal approved design Yes

Sales EstimationCost & Sales Direct Material Sales

Units % # of units/month cost per bun Total DM cost (month)Sales Total sales

Vegan 30% 6,831 $0.50 $ 3,406 $ 2.00 $ 13,662

chicken 30% 6,831 $0.26 $ 1,745 $ 1.60 $ 10,930

shrimp 27% 6,148 $0.23 $ 1,427 $ 1.50 $ 9,222

tea 13% 2,970 $0.28 $ 838 $ 1.50 $ 4,455

Total 100% 22,770 $1.27 $ 7,415 $ 38,268

Variable Overhead/ bun

Product Type vegeterian chicken shrimp tea

Direct Material $0.50 $0.26 $0.23 $0.28

Direct Labor $0.52 $0.52 $0.52 $0.52

Variable Overhead Manufacturing overhead $ 0.11 $ 0.11 $ 0.11 $ 0.11 Selling & administrative $ 0.01 $ 0.01 $ 0.01 $ 0.01

Total Cost/bun $1.14 $0.90 $0.87 $0.92