Chicken Queen Sales and Cost Results

Month March April May June July August Rent : Ads : Wages : Lights: Ingredients : Total Cost: Sales : 80% of the sales : Introduction: We have calculated the costs and the sales of your restaurant, Chicken Queen. We have found out that your sales and costs are stable and you should continue to open your restaurant. This is how we determined if you should open your restaurant or not. Calculation: At first, we times the costs (rent, ads, wages, lights, ingredients) so the cost would all be the same costs per year. We added the costs all together and total cost was: $247,480. Now that we have found out the costs, we have to find out the total sales. We times the number of customers per year (71,500 customers) with $4.50- on average each customer spends about $4.50. The total amount of sales was: $321,750. The next step we did was to find out and determine if you should continue to open your restaurant, by finding 80% of the sales. We found out that 80% of $321,750 was $257,400. We compared the amount of sales and the estimated amount of costs in one year (Cost: 247,480<Sales: 257,400) and we saw that the amount of costs in one year is less than 80% of the sales. Conclusion: You should continue to open Chicken Queen because your estimated cost is less than 80% of the projected sales throughout the year. No. of customers (71, 500) x4.50 80% of 321750 650x52 1500x12 8.50x20x10x52 2.50x12 1.50x No. of Customers (71,500) No. of Customers Month 5500 September 4500 October 4000 November 5500 December 6000 January 6500 February No. of Customers 6500 7000 6500 8000 5500 6000 33,800 18,000 88,400 30 107,250 247,480 321,750 257,400