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The first 200 words of this essay...
Break - even Analysis
To work out my profit (or loss) for the first year of business, I have to compare two things - the expected level of sales taken from my cash flow forecast and the break - even point on the break - even analysis graphs.
My cash flow forecast shows that for the first year of business, my expected level of sales will be approximately £58,800. This is the approximate income for the sale of 29,400 drinks in the first year.
The expected level of sales is worked out using the number of drinks each person will buy, the number of customers per week, the price of these drinks (on the assumption that there is no special offers, and all drinks are full price), and the number of weeks in each month. The formula for each month looks like this: -
Nº of Drinks
To work out the number of drinks which I will sell in the first year, I used following formula:-
Average nº Customers
Nº of Drinks
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