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Bakery The Building Should Be Business Plan

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This business will require both retail staff and bakers; though these positions can cross over to some degree, during hours of peak operation this will not be feasible. Counter help will be paid $9/hr, and bakers will be paid $12. Three eight hour baking shifts with a one hour lunch six days a week -- one 3:00 A.M. To 12:00 P.M., one 5am to 3pm, and one 11am to 7pm -- will cost $1,728; two eight-hour shifts on Sunday will be another $192. Counter staff will only be necessary while the store is actually open, and two people will need to be on at all times; the store is open 95 hrs per week so 190 counter staff hours are needed; this adds $1,520 to weekly labor costs, bringing the total to $3,440. Times 4.33, monthly labor costs are $14,895.20.

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As currently envisioned at startup, the company should be able handle two customers every minute, with an expected average purchase of $5. At full capacity, then, the company can generate $600 in sales every hour, and the bakery...

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An average sale of $5 would probably contain $1 in materials, meaning the contribution margin would be $4 and the ration would be 4:5.
1) at an average unit contribution margin of $1.60 (assuming the average unit is $2 with a 4:5 ratio), 13,529 units need to be sold to break even every month.

2) the average month has 30.4 days; breakeven for each day is $712 or 445 units.

3) at a 4:5 ratio, monthly break even requires $27,056.25 in sales dollars…

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