Small Business/MS Office

1
Small Business/MS Office

• Small Business Project

2
Keeping Track of Expenses

• Imagine you are running a small Ice Cream
  Shoppe.
• The following pages will describe the operation
  of the business.

3
The building

• You found a building with reasonable floor space
  and location for 2500/month.
• It costs 1875/month for electricity (remember,
  you have to keep those refrigerators running!)
• You pay 75/month for your simple business phone
  line to the building.

4
The building (cont)

• You pay 200/month in the winter months (Nov,
  Dec, Jan, Feb, Mar) to heat the place. During
  the other months, the excess heat from the
  refrigerators keeps the place warm.

5
Insurance

• You pay 15,000/year for insurance for your
  business.

6
Advertising

• You took out a ½ page ad in the Yellow book,
  which includes an e-mail address and web-site
  link that forwards to your phone. It costs
  750/month.
• You run fliers out to mailboxes once every three
  months at a cost of 500 each time.

7
Personnel

• You have the following people on your staff
• Day Manager 29,000/year
• Night Manager 24,800/year
• One helper behind the counter at all times at
  5.75/hour. Your store is open 12 hours/day.

8
Your Assignment

• Calculate the daily cost of running your business.

9
Part 2 Paying off Expenses

• Here, we will calculate how much money we need to
  pay off our expenses.
• This gives us a look at how much work we need to
  do just to keep from losing money.

10
Project Assignment 10/21/04

• Calculate the number of scoops of ice cream you
  must sell per day to cover your daily overhead
  costs.
• Assume that ice cream costs between 1.00 to
  2.00 per gallon.
• Assume that you get 40 to 50 scoops per gallon.
• Show your results in a table on a separate page.

11
Project Assignment 10/21/04

• Example scoops/day to break even

1.00 1.25 1.50 1.75 2.00
40
42
44
46
48
50