Write the LP formulation for the following problem Stuart Seeson, the manager of a sandwich shop,

Please answer questions A-D. Item Cost Office Chairs 400 Office…

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Asked by bsalcedo9925

Please answer questions A-D.

Item Cost
Office Chairs 400
Office Desk 300
Office Desktop 1000
Business Cards 25
Office Printer 700
Web development 32
Business License 50
DBA 50
Domain Name/Host 200
Rent, Deposit, and Utilities 800-1000
Office Telephone (one ) 65
Telephone Line 25
Professional Liability Insurance 150
Total Start-up Costs $3797-3997

Monthly Operating Budget (Overhead Costs) 

(Provide a detailed list of all overhead costs that you can foresee. Estimate the average monthly cost per item for each of these to determine your monthly operating budget. A.Then include these costs in your 12-month profit and loss statement)

Overhead Item Cost
Advertising 200
Insurance 150
Supplies-visual measurements 100
Office printer 700
Web development 32/month
Business Cards 25
Office supplies 200
Office Chairs, desk, and desktop 1700
Total Overhead Costs Per Month 4470


Product/Services Offered & Gross Profit

(make a table of the various products/services you plan to offer, the sales price and cost of goods sold (COGS) for each item. Then calculate the gross profit and gross profit margin percentage for each item.)

Product/Service Sales Price COGS Gross Profit Margin $ Gross Profit Margin %
Nutrition Counseling-Intial Consultation $150 0 $150 100%
Nutrition Counseling- Follow Up $75 0 $75 100%
Cooking Class $75 100 -25% -33.3%
Specialized meal plan $50 0 $50 100%
Group Cooking Class-Via Non-profit organization ( 5-7 people) $250 $500-$700 -$250 to -$450 -100% to -180%

B. Break-Even Point

(Calculate your break-event point in dollars and units/month)

C. Business Profit and Loss Projection/sales forecast-First 12 months (attach 12-month sample profit and loss projection financial statement. Include a paragraph explanation of your sales forecast here. For each month how did you estimate your total income?)

D. Write_a_paragraph to describe how you compare to your competitors? What are your advantages/opportunities? How you will distinguish yourself? What will your customers remember about you

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