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Tired of the corporate life Angie opened Angies Empanadas in on April 1st near a large
university campus. She had long been told that her empanadas were the best in town.
Angie sells three different types of empanadas, Peruvian, Argentinean and vegaterian as
appetizers, selling to local restaurants.
The empanadas are assembled in a rented kitchen, with the stuffing fully cooked, frozen
and then placed on trays in batches of eight. Currently all types sell for the same price.
Each tray of 8 empanadas is priced
See attached Spreadsheet.
at $
Restaurants unwrap the tray and then heat the empanadas in an oven as an appetizer for
patrons. Angie rented a kitchen near her home. Angie does most of the preparation and
assembly herself but additional labor is hired as needed to help make the product. The
assembly is mostly by hand so labor is a relatively large part of the cost of the product.
Because the ingredients are organic and sometimes not readily available they are relatively
high cost as well. Angie relies on quality and excellent taste to differentiate her products but
is trying to keep the price low to gain a foothold in the market.
Angies realizes that the business will take time to be profitable so her short term goal is to
break even. By the end of the first year Angie would like to earn at least $4,000 a month.
The results of Angies first six months of operations are presented on the attached
spreadsheet. Prices are per tray so when determining per unit amounts use trays as the
basic unit.