Last updated on 3/30/22
Calculate the expense structure of a pastry shop (Study case)
- Understand the elements of an enterprise's expense report
The quiz below is built to help you to apply on a real case the principles we developed in the course of this part, regarding Financial Projections. It consists in an exercise that will lead you, step by step, to building the financial projections for the High end Pastry Shop we already talked about. Your ability to answer to the first question will impact the rest of your answers. So, take as much time as you need to do this quiz.
STEP 1 : Marketing expenses
We estimate that flyer distribution will cost on average, 0,20€ per flyer (printing and distribution), which means an average of 1000€ for 5000 flyers. In the Financial projection template that you downloaded, how should we incorporate this information ? In which line of expense ?
As an investment as it is the effort for launching the shop
As an operational expense as it is an on going effort to build a flow of first time visitors
As a mix between, operational expenses, as printing is indeed an operational expense, but distribution cost, as it involves people should be accounted as people expenses
STEP 2 : Production expenses
In order to answer this question, you must use the excel file (template) downloaded at the beginning of the exercise (download it HERE if you haven’t done it yet) and take into account the following expense structure :
Investments Operational expenses People (gross salary)
Kitchen and cooking equipment:
30% of sales
3 000€ per month
2 000€ per month
Integrate this expense plan in the excel template, and then, identify among the 3 proposals below, regarding production expenses for year 1, which one is correct ?
STEP 3 : The relationship between expenses & business development
We assessed that the team (Chef, Assistant) can produce on average 300 cakes per day, which corresponds more or less to an average of 100 customers per day. Using the data’s that you were given, try to predict when we need to plan to hire a 2nd assistant to our Chef.