Calculation of First Year Break Even Points

Note M1 M2 M3
Jan Feb Mar
Stores 1,200 2,400 3,600
Multiply by 200 carts 200 200 200
Total Carts 240,000 480,000 720,000
Multiply by Revenue per cart 1,620,000.00 3,240,000.00 4,860,000.00
Total Revenues 1 388,800,000,000 1,555,200,000,000 3,499,200,000,000

Variable Costs (VC)

Amortization (2 year S/L) 2 $746,400 $746,400 $746,400
Printing 3 240000 480,000 720,000
Replacement (even distribution) 4 75,960 75,960 75,960
Cart Rental (10% Revenue) 5 38,880,000,000 155,520,000,000 349,920,000,000
Mktg. Sales & Comm. 6 840,000 840,000 840,000
Grocery Store Operations 7 0 0 0
Total VC 38,881,902,360 155,522,142,360 349,922,382,360

Contribution Margin (CM) 349,918,097,640 1,399,677,857,640 3,149,277,617,640

CM per Unit/Cart 1,457,992.07 2,915,995.54 4,373,996.69

Fixed Costs (FC)

Accounting & Audit 8 6,000 6,000 6,000
Advertising (even distribution) 9 39,375 39,375 39,375
Auto Lease 10 2,000 2,000 2,000
Bank Charges 11 1,667 1,667 1,667
Entertainment & Promotion 12 10,000 10,000 10,000
Insurance 13 8,333 8,333 8,333
Legal 14 10,000 10,000 10,000
Management Fees 15 24,167 24,167 24,167
Office & Sundry 16 5,000 5,000 5,000
Public Relations 17 33,333 33,333 33,333
Rent 18 10,000 10,000 10,000
Salaries & Benefits 19 24,000 24,000 24,000
Stationary & Printing 20 833 833 833
Telephone & Faxc 21 3,500 3,500 3,500
Travel & Accommodation 22 10,000 10,000 10,000
Total FC 188,208 188,208 188,208

Total Expenses (VC + FC) 38,882,090,568 155,522,330,568 349,922,570,568

Net Operating Income 349,917,909,432 1,399,677,669,432 3,149,277,429,432

Break Even Point in terms of carts

Break Even Point in terms of stores

 M4 M5 M6 M7 M8 M9
Apr May Jun Jul Aug Sep
4,800 6,000 7,200 8,400 9,600 10,800
200 200 200 200 200 200
960,000 1,200,000 1,440,000 1,680,000 1,920,000 2,160,000
6,480,000.00 8,100,000.00 9,720,000.00 11,340,000.00 12,960,000.00 14,580,000.00
6,220,800,000,000 9,720,000,000,000 13,996,800,000,000 19,051,200,000,000 24,883,200,000,000 31,492,800,000,000

$746,400 $746,400 $746,400 $746,400 $746,400 $746,400

1,200,000 1,440,000 1,680,000 1,920,000 2,160,000 2,400,000
75,960 75,960 75,960 75,960 75,960 75,960
622,080,000,000 972,000,000,000 1,399,680,000,000 1,905,120,000,000 2,488,320,000,000 3,149,280,000,000
1,592,333 1,592,333 1,592,333 2,319,000 2,319,000 2,319,000
0 0 360,000 0 0 720,000
622,083,614,693 972,003,854,693 1,399,684,454,693 1,905,125,061,360 2,488,325,301,360 3,149,286,261,360

5,598,716,385,307 8,747,996,145,307 12,597,115,545,307 17,146,074,938,640 22,394,874,698,640 28,343,513,738,640

5,831,996.23 7,289,996.79 8,747,996.91 10,205,996.99 11,663,997.24 13,121,997.10

6,000 6,000 6,000 6,000 6,000 6,000

39,375 39,375 39,375 39,375 39,375 39,375
2,000 2,000 2,000 2,000 2,000 2,000
1,667 1,667 1,667 1,667 1,667 1,667
10,000 10,000 10,000 10,000 10,000 10,000
8,333 8,333 8,333 8,333 8,333 8,333
 10,000 10,000 10,000 10,000 10,000 10,000
24,167 24,167 24,167 24,167 24,167 24,167
3,000 3,000 3,000 4,000 4,000 4,000
33,333 33,333 33,333 33,333 33,333 33,333
10,000 10,000 10,000 10,000 10,000 10,000
24,000 24,000 24,000 24,000 24,000 24,000
833 833 833 833 833 833
3,500 3,500 3,500 3,500 3,500 3,500
20,000 20,000 20,000 30,000 30,000 30,000
196,208 196,208 196,208 207,208 207,208 207,208

622,083,810,901 972,004,050,902 1,399,684,650,902 1,905,125,268,568 2,488,325,508,568 3,149,286,468,568

5,598,716,189,099 8,747,995,949,098 12,597,115,349,098 17,146,074,731,432 22,394,874,491,432 28,343,513,531,432

 M10 M11 M12 1st
Oct Nov Dec Year
12,000 13,200 14,000 93,200
200 200 200 2,400
2,400,000 2,640,000 2,800,000 18,640,000
16,200,000.00 17,820,000.00 19,440,000.00 126,360,000
38,880,000,000,000 47,044,800,000,000 54,432,000,000,000 251,164,800,000,000

0
0
$746,400 $746,400 $746,400 8,956,800
2,640,000 2,880,000 3,120,000 20,880,000
75,960 75,960 75,960 911,520
3,888,000,000,000 4,704,480,000,000 5,443,200,000,000 25,116,480,000,000
3,048,000 3,048,000 3,048,000 23,398,000
0 0 1,080,000 2,160,000
3,888,006,510,360 4,704,486,750,360 5,443,208,070,360 25,116,536,306,320

34,991,993,489,640 42,340,313,249,640 48,988,791,929,640 226,048,263,693,680

14,579,997.29 16,037,997.44 17,495,997.12 113,723,957
0
0
0
6,000 6,000 21,000 87,000
39,375 39,375 39,375 472,500
2,000 2,000 2,000 24,000
1,667 1,667 1,667 20,000
10,000 10,000 10,000 120,000
8,333 8,333 8,333 100,000
 10,000 10,000 10,000 120,000
24,167 24,167 24,167 290,004
5,000 5,000 5,000 51,000
33,333 33,333 33,333 400,000
10,000 10,000 10,000 120,000
24,000 24,000 24,000 288,000
833 833 833 10,000
3,500 3,500 3,500 42,000
45,000 45,000 45,000 315,000
223,208 223,208 238,208 2,459,500

3,888,006,733,568 4,704,486,973,568 5,443,208,308,568 25,116,538,765,820

34,991,993,266,432 42,340,313,026,432 48,988,791,691,432 226,048,261,234,180

46

111,566,426,014
Calculation of First Year Break Even Points

1st 2nd 3rd 4th 1st

Qtr Qtr Qtr Qtr Year
7,200 18,000 28,800 39,200 93,200
600 600 600 600 2,400
1,440,000 3,600,000 5,760,000 7,840,000 18,640,000
9,720,000 24,300,000 38,880,000 53,460,000 126,360,000
5,443,200,000,000 29,937,600,000,000 75,427,200,000,000 140,356,800,000,000 251,164,800,000,000

2,239,200 2,239,200 2,239,200 2,239,200 8,956,800

158,400 475,200 712,800 950,400 2,296,800
227,880 227,880 227,880 227,880 911,520
544,320,000,000 2,993,760,000,000 7,542,720,000,000 14,035,680,000,000 25,116,480,000,000
2,583,000 4,777,000 6,957,000 9,144,000 23,461,000
2,520,000 2,880,000 3,240,000 3,600,000 12,240,000
544,326,427,080 2,993,771,924,080 7,542,736,624,080 14,035,701,331,080 25,116,536,306,320

4,898,873,572,920 26,943,828,075,920 67,884,463,375,920 126,321,098,668,920 226,048,263,693,680

3,401,995.54 7,484,396.69 11,785,497.11 16,112,385.03 12,127,052.77

18,000 18,000 18,000 39,000 93,000

118,125 118,125 118,125 118,125 472,500
6,000 6,000 6,000 6,000 24,000
5,000 5,000 5,000 5,000 20,000
30,000 30,000 30,000 30,000 120,000
25,000 25,000 25,000 25,000 100,000
 30,000 30,000 30,000 30,000 120,000
72,500 72,500 72,500 72,500 290,000
15,000 9,000 12,000 15,000 51,000
100,000 100,000 100,000 100,000 400,000
30,000 30,000 30,000 30,000 120,000
72,000 72,000 72,000 72,000 288,000
10,000 0 0 0 10,000
10,500 10,500 10,500 10,500 42,000
30,000 60,000 90,000 135,000 315,000
564,625 588,625 621,625 684,625 2,459,500

544,326,991,705 2,993,772,512,705 7,542,737,245,705 14,035,702,015,705 25,116,538,765,820

4,898,873,008,295 26,943,827,487,295 67,884,462,754,295 126,321,097,984,295 226,048,261,234,180

46

111,566,426,014