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…
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
