Sales

Cost of Goods Sold

Gross Margin
Payroll
Rent
Insurance
Depreciation
Interest
Vehicles
Delivery
Utilities
Café Start-up Cost
Middlesex Interior and other Moving Cost
Other
Tax
Net Income (Loss)

KPIs
Gross Margin
Net Profit Margin
 Financial Projections
Assumptions
2007 (July - Dec.) 2008
Refer to Sales & CGS Sched. Table 648,420 1,671,873
Refer to Sales & CGS Sched. Table 146,982 379,348
501,439 1,292,525
Added an estimated annual salary of pastry baker (amounting to 257,056 514,112
Incremental rate of $4,800 per month with annual inflation 38,328 79,109
Account movement is based on percentage of sales 49,792 128,382
Newly acquired oven is depreciated over 10 years 30,703 61,405
Assumed fixed 2,359 4,718
Account movement is based on percentage of sales 18,597 47,949
Account movement is based on percentage of sales 18,774 48,405
Account movement is based on percentage of sales 13,290 34,267
Based on case facts 20,000 -
Based on case facts 225,000 -
Account movement is based on percentage of sales 27,933 72,021
Account movement is based on percentage of sales 378 974
(200,770) 301,182

77% 77%
-31% 18%
Financial Projections
2009 2010 2011
2,173,435 2,825,466 2,869,886
493,153 641,099 573,977
1,680,282 2,184,367 2,295,909
514,112 514,112 514,112
81,640 84,253 84,253
166,896 216,965 220,376
61,405 61,405 61,405
4,718 4,718 4,718
62,334 81,035 82,309
62,927 81,805 83,091
44,548 57,912 58,822
- - -
- - -
93,627 121,715 123,629
1,266 1,646 1,672
586,809 958,801 1,061,522 37%

77% 77% 80%

27% 34% 37%
Key TakeAways: If Bread Sales Volume is lower than capacity limit, use the excess
capacity for pastry

Ingredient cost of pastry is 166% higher than of bread.

We added 70% selling price premium on pastry compared to bread to recompense
for the higher ingredient cost and maintain a sizable margin
Estimated daily demand for introduced pastry is assumed at 300 units (by estimating
the year 1 average daily demand of Bread using the 30% growth rate)

New Daily Capacity (2200 + 3300), in units 5,500 Estimated Demand - Bre
Days Daily Volume Total
Estimated Sales Growth Rate (to set pastry
with same growth rate) 30% Mud Season 53 1,833 97,149
Average Price per Bread ### Saturdays 52 2,200 114,400
Selling Price per Pastry ### Fridays 52 2,000 104,000
Rest of the Year 208 1,913 397,904 312 616,304 1,975.33 360,498.33

2007 (July - Dec.) 2008 2009 2010 2011

Annual Capacity Limit (in units) 1,003,750 2,007,500 2,007,500 2,007,500 2,007,500
Expected Annual Sales Volume (in units)
Bread 360,498 927,489 1,205,736 1,567,456 2,007,500
Pastry 54,750 142,350 185,055 240,572 - -
Total 415,248 1,069,839 1,390,791 1,808,028 2,007,500
2,037,693.11 30,193.11
Revenue (in US$) 2007 (July - Dec.) 2008 2009 2010 2011
Bread 515,362 1,325,922 1,723,698 2,240,808 2,869,886
Pastry 133,058 345,952 449,737 584,658 -
Total 648,420 1,671,873 2,173,435 2,825,466 2,869,886

Cost of Goods Sold 2007 (July - Dec.) 2008 2009 2010 2011
Bread (20%) 103,072 265,184 344,740 448,162 573,977
Pastry (33%) 43,909 114,164 148,413 192,937 -
Total 146,982 379,348 493,153 641,099 573,977
Exec. Summary
Position S Move to Duxbury
Criteria Financial, Operation, Strategy

Argument - Finance
Initially, they will suffer a loss amounting to $8,272 on 2007 due to required moving cost and increase in other oper

Argument - Operation
Conducive for Retail.

Argument - Strategy

Action Plan
ost and increase in other operations cost. However, they will start to generate net income starting 2008. (Please refer to exhibit 1)
ease refer to exhibit 1)
 2006
Jan-June July-Dec Total
Sales - Bread 384,522 557,839 942,361
Sales - Pastry

Cost of Goods Sold - Bread

82,287 107,355 189,642
Cost of Goods Sold - Pastry

Gross Margin 302,235 450,484 752,719

Payroll 196,956 238,222 435,178
Rent 9,191 9,528 18,719
% of Sales Insurance 28,443 43,920 72,363
Depreciation 26,953 26,953 53,905
Interest 3,688 2,998 6,686
% of Sales Vehicles 12,472 14,555 27,027
% of Sales Delivery 12,680 14,604 27,284
% of Sales Utilities 7,699 11,616 19,315
Café Start-up Cost

Middlesex Interior and other

Moving Cost

% of Sales Other 20,193 20,402 40,595

% of Sales Tax 411 138 549
Net Income (Loss) (16,451) 67,548 51,098

2008
Additional Revenu if We will introduce pastry
Cost
start up
Cost of Bread
Cost of Baker
Rent
1st half of 200 2nd half 2007 2008 2009
Volume- Bread 1100 1,650.00 3,575.00 4,647.00
Volume - Pastry - 1,100.00 1,788.00 489.00
Total 1100 2750 5363 5136
Capacity Limit 1100 2750 5500 5500

Average Price per bread 468.51

Average price per pastry 585.64

Estimated Sales - Bread 515,362.00 773,043.00 1,674,926.50 2,177,170.19

Estimated Sales - Pastry
Estimated Sales - Total 515,362.00 773,043.00 1,674,926.50 2,177,170.19
Cost Ratio - Pastry 25%
Estimated - Demand Pastry
Price 585.64
Baker Salary $37,668
Baker Salary half year
 2007 2007 2008
Assumptions Jan-June July-Dec Total Jan-June
515,362 773,043.00 1,288,405.00 837,463.25
- - -

20% 96,141 155,568.22 251,709.22 168,532.24

- - 0
80% 419,221 617,475 1,036,696 668,931
46% 231,663 238,222 469885 231,663
2% 9,486 1.032097 $30,000 39486 $30,962.90
8% 34,345 59,361.23 93,706.23 34,345
6% 26,953 $37,667.29 64620.2857143 $37,667.29
1% 2,359 2,998 5357 2,359
3% 15,417 14,555 29972 24,018.52
3% 17,906 22,381.77 40,287.77 24,246.92
2% 11,198 15,844.59 27,042.59 17,165
$20,000 20,000.00

$225,000 225,000.00 0
4% 30,147 33,301.12 63,448.12 36,076.22
0% 113 450.36 563.36 487.89
39,634 (82,307) (42,673) 229,939

2009 2010

2010
6,041.00 Long term action plan

6041
5500

2,576,810.00

2,576,810.00
 2970 0.11111111111
2008 2009 2010
July-Dec Total Jan-June July-Dec Total Jan-June
837,463.25 1,674,926.50 1,088,585.10 1,088,585.10 2,177,170.19 1,288,405.00
- - - - - -

168,532.24 337,064.47 219068.334764 219068.334764485 438136.669529 259280.361783

0 0 0 0 0 0
668,931 1,337,862 1,088,585.10 1,088,585.10 2,177,170.19 1,288,405
238,222 469,885 231,663 238,222 469,885 231,663
$30,962.90 61,926 $31,956.70 $31,956.70 63,913 $32,982.40
59,361.23 93,706 83,591.41 83,591.41 167,183 98,935.39
$37,667.29 75,335 $37,667.29 $37,667.29 75,335 $37,667.29
2,998 5,357 2,359 2,998 5,357 2,359
24,018.52 48,037 31,220.72 31,220.72 62,441 36,951.57
24,246.92 48,494 31,517.60 31,517.60 63,035 37,302.95
17,165 34,330 22,312.07 22,312.07 44,624 26,407.65
0

0 -
36,076.22 72,152 46,894.04 46,894.04 93,788.07 55,501.87
487.89 975.777487078 634.19 634.19 1,268.37 750.60
197,725 427,664 568,769 561,571 1,130,340 727,883
26%
 0
2010
July-Dec Total
1,288,405.00 2576810
- 0

259280.361783 518560.724

0 0
1,288,405 2,576,810
238,222 469,885
$32,982.40 65,965
98,935.39 197,871
$37,667.29 75,335
2,998 5,357
36,951.57 73,903
37,302.95 74,606
26,407.65 52,815

55,501.87 111,004
750.60 1501.19613
720,685 1,448,569 56%
 Assumptions: Notes
Sales Growth 35%
Current Capacity Limit (Old Oven - Duxbury) 2,200 units

Café Café Start-up Cost $20,000

Café Baker Payroll $37,668
Estimated Pastry Demand Constrained with 5,500
Estimated Selling Price - Pastry
Pastry Gross Margin 75%

New Oven Cost $75,000

Interior Finishing and other Moving Cost $225,000
New Capacity Limit (New Oven) 3,300 units

Duxbury Monthly Rent $2,000

Middlesex Monthly Rent - Facility $5,000
Café Monthly Rent $1,800
Incremental Monthly Rent $4,800

Inflation Rate 3.20%

Useful life of newly acquired PPE 10 years