Question

Part Time Employee (2 Employees) Per Month	28,800
Manager Salary per month	40,000
Telephone Bill and utilities per month	15,000
Lease Cost per month	30,000
JTL link per month	10,000
Insurance per month	10,000
Marketing per month	10,000
Maintenance and administrative  per month	50,000	*THE RED= Variable Costs.

The BOLD is variable cost.

Café open to the public 84 hours per week.
Internet cost per Hour	$120.00	40% of cutomers	Profit
Cost of drinks to customer	$140.00	Cost to Café $50.00	$90.00
Cost of food to customer	$60.00	Cost to Café $30.00	$30.00
CAPACITY CAFÉ has 50 Seats 15 Seats are computer terminals (3 customers per booth) THE TOTAL COST of startup costs: 1.426 Million, How many customers will need to visit to break even?

Answer 1

Particulars		Amount
Revenue:
Drink	50 X 140 X 84 X 4	2352000 x
Food	50 X 60 X 84 X 4	1008000 x
Internet	15 X 120 X 84 X 4 X 40 %	241920 x
Total		3601920 x
Cost:
Drink	50 X 50 X 84 X 4	840000x
Food	50 X 30 X 84 X 4	504000x
Other monthly costs total		193800
Initial Costs		1426000
Total		2963800 x

At Break-Even point; Total Costs are equal to Total Revenues , Therefore

3601920 x = 2963800 x

=> x = 1.215

Therefore no. of customers required every month

= 1.215 X 50 X 84 X 4 = 20412 customers per month.