Holy Doughnut business plan

Brendan Pollok
102 E Main St,
Brighton, MI 48116
810-333-6666
Holydoughnut@doughnutsrock.com
12/22/2016

Date

Table of Contents
Executive
Summary......................................................................................................................1
Business
Description....................................................................................................................2
Goals
...............................................................................................................................................2
Vision Statement
.............................................................................................................................2
Mission
Statement............................................................................................................................2
Business
Overview...........................................................................................................................2
Products/Services............................................................................................................................
.3
Business Location
............................................................................................................................3
Market Evaluation.
Industry ...........................................................................................................................................
Conditions........................................................................................................................................
Economic Conditions...............................................................................................................
Trade Area
Analysis.........................................................................................................................
Target Market.............................................................................................................................
Competition
.....................................................................................................................................
Operations
......................................................................................................................................
Organizational Structure .................................................................................................................
Management
Team..........................................................................................................................
Marketing Strategies ......................................................................................................................
Human Resources ..........................................................................................................................
Risk Management ...........................................................................................................................
Financial Plans
...............................................................................................................................
Introduction
Capital
Financial Statements
Future Plans
Conclusion

Appendices

Executive Summary
What's America's favorite beverage? Coffee, the average american drinks three cups of coffee a
day. Now what pairs perfectly with coffee? The doughnut. The doughnut has always been one
of America's favorite baked goods and lately its only become more popular. Over the past few
years demand for doughnuts has skyrocketed and even big industries are struggling to keep up.
I believe that now is the perfect time for the independent, classic doughnut shop to re-emerge. It
is because of this I now propose Holy Doughnut. Holy Doughnut is unique to the doughnut
industry because it offers doughnuts and coffee freshly made when you walk in the door and
because of our outstanding customer service which many big businesses notably lack in.
Holy Doughnut is an independent store that is going to be manned by a small team of no more
than five people. These employees will fill the four main positions: janitor, baker, cashier and
manager which will be manned by myself. With this small team the business will operate
efficiently and be able to maintain lower prices than the competition. Holy Doughnut has two
primary target markets: Retirees and families. Retirees and families are some of the doughnut
and coffee industry's biggest customers, often frequenting multiple times a week for something
tasty and warm.
Holy Doughnuts pricing is very reasonable and competitive. Many of our competitors charge
upwards of ten dollars for a dozen doughnuts, however with our smaller team and our mentality
that the best things should come cheap, we will be selling a dozen doughnuts for about eight
dollars.
Within for the first few years of business I expect to make about $140,000 in yearly sales.
However after three years I expect that sales will start to increase on a yearly basis of about 1015% due to increased name recognition, use of advertising and our promotions. I plan on
creating a number of promotions such as a sweepstakes that a customer can be added to just
by coming into the store or a contest to produce the best doughnut. I also plan to use some
advertisements. 30 sec radio advertising is the primary mode to which I plan to advertise
however I also may also rent one or two billboards as well.
The only thing needed to start this gold mine business is a small loan of one million dollars. This
loan will primarily go to the purchase of the building but also to buying the necessary equipment
for start up. I plan on paying this loan back on a monthly basis over a thirty to forty year period
depending on overall sales.

Business Description
Goals
It was always my fathers dream to start a doughnut shop and before he passed he instilled in
me the same dream, and Holy Doughnut is my way of realizing our dream. As a business my
goal for Holy Doughnut is to turn a profit by its third year and to add new items and services
within two years of opening. In the long term I plan on expanding the business to two or three
locations within 10 - 15 years, and having state wide name recognition within 20 years.

Vision Statement
My vision for Holy Doughnut is to bring quality service and delicious doughnuts back to an
industry that has largely become dominated by big business.

Mission Statement
At holy doughnut our goal it to make the best doughnuts for you, our whole mission is to
bring back quality to the lacking big business market, with dedicated employees,
customer friendly service, and delicious doughnuts.

Business Overview
Holy doughnut is the classic small town doughnut shop run by myself and a small handful of
employees. We are dedicated to providing quality products like delicious doughnuts and fresh
coffee. We open promptly at 5:30 am and close at 5 pm. The main strength that Holy doughnut
has over franchise competitors is our quality. All our doughnuts and coffee is made fresh all day
long and have a taste that only handmade doughnuts can provide.
As a local company it is our responsibility to make ourselves known in the community and to
give back to those in need. With that in mind Holy Doughnut plans on joining in and eventually
co-sponsoring community events. We also plan on giving back to the community by annually
giving back 5% of our profits to Gleaners food bank to feed those in need.

Products or Services
Holy Doughnut is currently focused primarily on the crafting of delicious, fresh doughnuts and
coffee to our customers. Our doughnuts come in variety of flavors such as: cherry, chocolate,
glazed, cream and sprinkle to name a few. The Doughnuts come in a variety of styles such as

doughnut holes, doughnut rings and our baked to order build your own doughnuts that is
available through our website. We also provide fresh delicious coffee that is brewed from
peruvian coffee beans and that can be customized to the customer using our build your own
coffee station.

Business Location
Holy Doughnut shop is a brick and mortar store that will exist only in Brighton Michigan. All our
products are going to be made on site in the back of the store and products will be sold out the
front. The store itself will be located at 8539 W Grand River Ave, Brighton, MI 48116. The
location is about 38 by 34 square ft . Based on estimations of similar sized buildings in the area
I expect it to cost about $900,000 to buy, with an estimated $5,000 for maintenance and utilities.
The equipment needed to begin operations: such as mixers, fryers, working tables, ovens and
refrigerator, will be provided through a number of restaurant supply stores and will cost
approximately $35,000. This equipment will be stored in the back in the baking area leaving the
front clear for business operations. I plan to design the interior to have a bright atmosphere and
simple wall designs. I plan to use this design because it is regarded as the norm for doughnut
shops and will be familiar to customers.
The particular location ive chosen to start my business in is zoned as a general business area.
This location is very useful for a number of reasons. The first of which is that it's very
convenient, this location provides a small parking area for customers and employees, and is
also positioned very closely to the highway and local schools encouraging high traffic. Another
reason this location is useful is because its near the competition, being close to the competition
is ideal because it attracts their customers and better promotes my business.

Market Evaluation
Industry Conditions
The doughnut industry is generally fairly stable, making it a safe investment to start a business.
Nationally the doughnut industry rakes in 11.2 billion dollars every year. However the demand

for doughnuts and coffee is currently very high with many big companies expanding
exponentially just to meet the demand.
With this high demand and the growth of larger companies many customers are starting to look
for more unique designs and flavors that stand out from the norm, Holy doughnut plans on
providing this through the use of a flavor of the month addition to the menu and by taking
customer suggestions for new flavors and designs. Gourmet doughnuts isnt the only trend in
the doughnut industry, a long time complaint of consumers is the lack of good customer service,
a trend that won't be tolerated at Holy Doughnut. We plan to combat this problem with the use
of feedback forms and a two strike policy for employees.
The Doughnut industry in itself has few entry barriers consisting only of securing a place of
business, big company competition and food licensing/FDA standards.

Economic Conditions
For the foreseeable future holy doughnut will be conducting all business within the United
States. The United States is characterized by a highly fluctuating economy due to its reliance on
foreign affairs and trade. In the last ten years job growth has been fluctuating significantly, as of
recent numbers the United states has a low unemployment rate of 5% one of the lowest
unemployment rates of the last ten years. GDP in the U.S. has also been largely fluctuating over
the last ten years going as low as -8% and as high as 5%, currently the United states is sitting at
a healthy 2% for coming out of a recent recession.

Trade Area Analysis

Holy Doughnut is based in Brighton Michigan and its overall trade area is the Livingston county
area. Geographically Livingston county is the home to nearly 200,000 people and is very typical
of the midwest climate with its hot summers and frigid winters. These conditions make
Livingston county an ideal place for a doughnut shop. The population is the perfect size to
market to and the cold winter climate increases customer desire for a warm cup of coffee.
Economically Livingston is a very stable place with much of the population being employed and
making about $35,000 a year. This area also provides a bright economic future with 94%
graduating highschool and 34% graduating college. This area is a good location economically

because it offers easy access to well educated students, a good economy and to financial
facilities willing to provide assistance to new businesses.

Target Market
Holy Doughnut has two major target markets: Adults and retirees. Adults are our primary market
because of families, many adults between the ages of 30 and 40 have one to two children. By
targeting families we ensure many repeat sales based on desire of the parents to please their
children, while being able to indulge as well. Retirees are also a major market because like all
people they enjoy a tasty treat with a warm cup of coffee. What makes them different however is
that most retirees have expendable income and time that they can invest in tasty treats such as
doughnuts.
Market profile #1
Individuals between the ages of thirty and forty years old, have at least one child, live in the
livingston county area, make a medium income ($30,000+). Would come to Holy Doughnut to
take their children out for tasty treat and/ or to get something for themselves when heading to
work.
Market profile #2
Individuals that are 60+ years old, are retired, are living in Livingston county area and have a
medium income ($30,000+). Would come to Holy Doughnut to enjoy delicious coffee and
doughnuts every morning and to socialize with other retirees who frequent the store.

Competition
As an independent doughnut shop, one of the major disadvantages is the presence of big
competition. In Brighton Mi, there are three main sources of competition: Dunkin Doughnuts,
Starbucks and Tim Hortons.

Tim Hortons: is a source of direct competition. My advantages over them include: lower
cost, freshers products more variety in flavors. My disadvantages are that I have less
name recognition and have less ability to advertise.

Dunkin Donuts is also in direct competition. My advantages over them include: lower
cost, freshers products and more variety in flavors. My disadvantages are that we have
less name recognition and have less ability to advertise.
Starbucks is an indirect competitor with their coffee and baked goods. My advantages
are significantly lower prices, fresher product and more variety in our baked goods. My
disadvantages are significantly lower name recognition, less advertising capabilities and
lower quality coffee. Holy Doughnut provides the freshest, tastiest and lowest cost
products on the market, we recognize the hard economic time so we want to create the
highest quality breakfast for the lowest cost.

Operations
Organizational Structure
Holy Doughnut is a sole proprietorship. Ive chosen to be the sole proprietor of my business for
a number of reasons. The biggest reason is to avoid complications and conflicts of interests
involved in managing a partnership. Conflicts aside sole proprietorships are easy to get into with
very little business experience, they can avoid corporate taxes and have full power over the
business. However despite the advantages of a sole proprietorship it also has distinct
disadvantages, such as 100% liability for the business's debts and the actions of the
employees.

Management Team
My main source of business experience is via my highschool job and my personal studies in
business. During my high school I worked for an entrepreneur at one of his businesss, this job
provided me with a lot of insight into managing a business efficiently and effectively. This insight
combined with my personal studies in interpreting the economy and maximizing profit has given
me the base experience necessary to manage a small business while learning on the fly.
While a manager is the lifeblood of the business their are many other important roles that must
be filled for the business to operate smoothly, within the first few years of being open holy
doughnut will need 3 roles to be filled: janitor, baker and cashier. Next to manager the second
most important role is the position of janitor, the janitor is in charge of maintaining the dining
area, the bathrooms and keeping the work stations clean. Another important role to the
company is the baker, the baker is in charge of producing our baked goods and making sure
that all products remain fresh. The cashier is the final vital part of the business, the cashier is in
charge of conducting business with consumers and brewing fresh coffee.
For the first few years of business Holy doughnut will employ no more than 5 employees (other
than the manager). The hiring process for Holy doughnut will start with the applicant filling out

an application and turning in their resume. The applicant's information is then reviewed and a
background check is conducted, if they meet the position requirements (such as prior work
experience) then they will be given an interview where the final hiring decision will be made. As
years pass and new job positions and job requirements arise I will put my employees through
professional development courses to teach new skills and better hone existing ones.

Marketing Strategies
Product
Holy Doughnut is going to take advantage of consumers growing taste for fresh, homemade
doughnuts. Holy Doughnut is going to sell through its brick and mortar Brighton location. We are
going to primarily sell our freshly made doughnuts and coffee, however we may add other
baked good and new flavors of doughnuts in the future depending on consumer demand. Our
doughnuts are unique because they are baked fresh twice a day, while many big companies like
Dunkin serve doughnuts that start frozen and then are thawed and sit all day until purchased.
Doughnuts and Coffee are also unique because they dont have a product life cycle, doughnuts
have been popular since their introduction and coffee is the America most popular beverage.
Price
At Holy Doughnut we believe that our products should be affordable to everyone. This is why
our pricing strategy is to simply sell enough to subsist. We plan to sell a dozen doughnuts for
about eight dollars. Compared to Dunkins $12 for a dozen doughnuts and Starbucks $25 for a
dozen muffins our price is the best option with regards to price and quality.
Place

One of the biggest advantages of Holy Doughnut as a business is that everything is done on
site. All of the baking of the product, all the selling of the product, and all the storage of the
materials to make the product are done in the store. This is advantageous because: it cuts down
on costs, cuts down on food waste, decreases reliance on others and allows for easy inventory
of materials and products. The only thing that we do rely on is the delivery of fresh ingredients
weekly.
Promotions
I plan to use a four pronged marketing campaign for promoting my business. The first prong will
be word of mouth advertising, Our doughnuts are so good that we expect our customers will do
a lot of advertising for the business by telling friends and family. The second prong is radio
advertising, many of our customers will be drivers so advertising over the radio is the best way
to reach them. We plan on using thirty second advertisements exclaiming how good our product
is, these advertisements will run for three months at a time. The third prong is being active in
community events and giving back to those in need. An example of such is our promise to
donate 5% of our yearly profit to the local food bank, I dont plan to actively advertise our
goodwill but would prefer that it be noticed on its own. The fourth and final prong is in our sales
promotions. I plan to use events such as contests and sweepstakes to bring in new customers
and boost sales during lull periods. An example of a contest is our yearly doughnut competition:
like a chili cook off competitors doughnuts will be judged by a panel, the winner of the
competition will get their recipe placed in Doughnuts Weekly and receives an $100 gift card to
a local store. These promotional techniques will be measured by increases in business over a
two month period after the promotion has been introduced.
More important than using promotions and advertising is our employees ability for personal
selling. Our employees are expected to have outstanding personal skills: always treating the
customer well and meeting their needs. Upon entering the store the employee is expected to
greet them and establish their needs, after establishing their needs the employee helps the
customer meet their needs, after the sale the employees are still expected to treat customers
well and meet any further needs they have.

Human Resources
Holy Doughnut plans on hiring no more than five employees for the first few years of business.
The hiring process for these employees will start with the release of a job posting on social
media and hiring sites. After interviewing the potential employees and going through their
background check they will be hired, assuming they meet the qualifications for the position.
Training will consist of teaching them the safety protocols, showing them the work area and
training them in the jobs they will be doing. Employees will be compensated with hourly wages
specified in their job description, they will also be eligible for a yearly bonus based on employee
performance and overall business performance.
Human resources will be handled by myself except in such cases where there is a conflict of
interest, in this instance an unbiased employee will fill in as the acting head of human
resources. Holy Doughnuts HR policies deal with issues such as: our open door policy,
employee compensation, non-discrimination clause, anti-sexual harassment policy and the use
of business technology. Employees can find these human resource policies in the employee
handbook. All employees are expected to follow these rules and are expected to report anyone
disobeying them, failure to do so can result in punishment, dismissal and even legal action.
Employees can submit all issues to me directly or to the anonymous suggestion box.

Risk Management Evaluation

Risks exist in all businesses no matter what they are. Holy Doughnut is no exception, it is for
this reason I plan to avoid and reduce these risks as best I can to better protect my employees,
customers and myself. As a food service their a number of federal and state laws that must be
adhered to. This includes the following.
The Fair Labor standards act: All employees are to be payed minimum wage, protect
minors from unfair/dangerous labor conditions and make sure businesses are
maintaining proper records.
The Occupational Safety and Health Act: The business must properly train all
employees, provide a safe working environment, provide safety equipment when
needed, Display info from the department of labor and providing rest periods every few
hours of work.
Assorted food regulations: All food must be fresh, food must be prepared properly and
cooked thoroughly, employees must wash their hand before and when returning to work,
food must be stored properly and must avoid cross contamination.
I plan to adhere to all of these laws and regulations, and will train my employees in following
them as well during their initial training and their yearly professional development course.
As well as laws there are other risks to the businesses employees such as: broken glass, wet
floors, burns and cuts. To combat these threats employees are trained to sweep up broken
glass immediately, place wet floor signs when needed, wear protective clothing when dealing
with hot object and in proper knife use.
Naturally there are a number of factors outside of the control of myself and my
employees, in these instances insurance is necessary. The following are insurances that will be
needed.
Commercial general liability insurance
Life insurance
Workers compensation insurance

Financial Plans
Capital
Source of funds document

Financial Statements

Pro forma cash flow statement

Pro forma opening-day balance sheet

Pro forma income statement

Financial Documents

Break-even analysis
Personal financial statement

Future Plans

I predict that during my first two years of business ill make approximately $140,000-180,000 in
sales every year. Every year after this I predict a 10-15% annual growth in sales due to growing
name recognition among the community and our ability to start participating in local events.
While profits are expected to jump exponentially I plan to grow the business at a steady pace,
making only minor additions to the menu. Within ten years of starting business I plan on making
the first major growth, I plan on creating a second shop in a neighboring county.

My exit strategy is simply to sell or close the business upon my death or retirement, however
this isn't expected to occur until nearly the 60th year of business. If in the unlikely event I were
to become incapacitated or to pass away, the responsibility to run the business would fall to my
next of kin until Im able to return or until a sale can be made for the business.

Conclusion
Holy Doughnut is a safe investment. The doughnut industry has historically been a stable
market and is currently on the rise with big businesses struggling to keep up. Because of this
increase in demand there's easy access into the market with consumers looking for something
other than the competitions mainstream products. Holy Doughnut plans on taking advantage of
the market's desire for fresh, new and homemade products that the big businesses are failing to
provide.
To start Holy Doughnut ill need about one million dollars to buy the building and to start
operations. After securing this funding I plan to run the business very conservatively hiring the
minimal employees, making changes when the market call for them and only expanding after
securing a firm place in the market. Repayment for this loan will be done on a monthly basis and
is expected to be paid back within 40 years at 6% interest.

Appendices
Include some of the following, as appropriate to your business:
Market research studies

Geographic Variables
Factors

Description

Region

Mid-west united states

Climate

Cold winters and mild humid summers

Population density

7336 people live in Brighton MI

Demographic Variables
Factors

Description

Age

5% of people under 5 years, 19% 18 and under and 21.7% above

65 years

Gender

53.8% are female

Income

Average income is $32,350 with only 8.4% below poverty line

Ethnicity

96% of population is white

Education level

93.4% are high school graduates and 34% as bachelors degree

Occupation

Doesnt matter because doughnuts sales are based of occupations

Marital status

62.93% of people are married 8.37% of people of divorced

Family size

The average people per household is 2.77 people

Behavioral Variables
Factors

Description

Benefits sought

Better taste and fresher product

Brand loyalty

Loyal to local doughnuts as opposed to big companies

Special occasions

National doughnut day, birthday deals, holiday deals

Usage rate

multiple times a week

Buying status

Any income

Competitive analysis

Competitive Analysis
Holy Doughnut

Variables
Food quality

Price

Name
recognition

# Customer

Tim Hortons

Dunkin Dounuts

Starbucks

Medium low food quality

medium- high quality

medium-low (8.99 for a

dozen doughnuts)

medium-high (12.00 for a

dozen doughnuts)

Very high (25.00 for a

dozen baked goods)

medium name
recognition in North
America

High name recognition,

known internationally

Very large name

recognition globally

Very large (1.7 billion cups

of coffee sold annually)

Very large
(150,000,000,0000 billion
cups of coffee annually)

medium-low food
quality

Very large (2 billions

cups of coffee sold
annually)

Quality of
service

medium-low service
quality

# of stores

4,590 locations

SWOT analysis

Generally low quality

service

medium quality

11,300+ stores

21,000 locations

SWOT Analysis
Holy Doughnut
Strengths

Weaknesses

Opportunities

Threats

Small doughnuts
shops often have
devoted customers

Little to no name
recognition

Filling market for

small independent
doughnut shop

Big companies like

Dunkin, Tim
Hortons and
Starbucks

Being specialized in a
few products allows
for better quality

Reliance on local
events and word of
mouth for
advertising

High population of
retirees

Local coffee shops

and bakeries

Taking advantage of
local events and
holidays which allows
for easy marketing

High population of
driving high school
students

Better more personal

customer service

Many local events

Map of trade area

Detailed promotions plan with dates

Contest
On July 10th residents of Livingston county can join the doughnut cook out, competitors will
have three hours to create the tastiest doughnut. creations will be judged by a panel of three
judges: the major, the principal of Brighton High School and the owner of Holy Doughnut. The
winner of the competition gets their recipe in the magazine doughnuts weekly and a one
thousand dollar check.
Sweepstakes
By coming into Holy doughnut of Friday June 3rd (national doughnut day) you can automatically
be entered into a sweepstakes for a hundred dollar gift card to any local store of choice. Must
be 18 to be entered into the sweepstakes.
Rebate
Any purchases of a hundred dollars or more between December 20th and December 26th is
eligible for a ten percent off mail in rebate.
Promotions budget,
Brendan Pollok
Holy Doughnut
Promotional
Budget
Media

$1,550
Description of
Spot

Link of Source Single Cost

Total Cost

Cable

one 30 sec ad

$500

$500

32.20%

TV

two 30 sec ad

$250

$500

32.20%

Radio

30 sec ad

$75

$75

4.80%

BillBoard

3 billboard ads

$100

$300

19.30%

Newspaper

4 news paper ads

$40

$160

10.30%

Magazine

#DIV/0!

Internet

#DIV/0!

Direct Mail

#DIV/0!

Totals

$1,535

98.80%

Detailed list of equipment owned or to be purchased

Items to be purchased
Large mixer = $700
Fryer = $1000
Large Freezer = $4,000
Large coffee maker = $300
Fridge = $1500 Cash register = $300 Display case = $5000 3 Large round table = $150 16 bar
chairs = $400 3 Work tables = $600 2 sinks = $800
counter = $300
Job description

Job
Head of cleanliness

Wage
$11.00 an hour
SUMMARY
Responsible for cleaning buildings, removing debris, and keeping work areas neat and tidy. Mops and buffs floors,
empties trash receptacles, and replace lining of trash cans.

PRIMARY RESPONSIBILITIES

Sweep and mop floors.

Clean buildings by emptying trash, sweeping, and cleaning surfaces.
Clean and disinfect baking area and equipment.
Monitor building security and safety by performing such tasks as locking doors after operating hours and
checking electrical appliance use to ensure that hazards are not created.
Use cleaning solutions to remove stains and clean surfaces.
Mix various cleaning agents.
Clean windows, glass partitions, and mirrors, using soapy water or other cleaners, sponges, and squeegees.
Dust furniture and scrub surfaces clean.
Apply wax to coat floors and buff.
Apply sealant to floors.
Clean and service restrooms with mops and disinfectants.
Mow lawns, trim shrubbery, plant flowers, and apply pesticides.
Move heavy equipment and furniture.

Identify and report possible repairs.

Fix minor plumbing leaks.
Shovel snow from sidewalks and sprinkle salt on surface.
Spray insecticides and fumigants to prevent insect and rodent infestation.

Sources of funds document

Equity financing

Amount

Personal savings

$10,000

Family and friends

$0

SBA assisted loan

$290,000

Angel investors

$450,000

Banks

$250,000

Pro forma balance sheet

ASSETS
Current Assets
Cash

Your numbers
$950,000

Inventory

$0

Accounts Receivable

$0

Total Current Assets

$950,000

Long Term Assets

Building

$0

Equipment

$0

Total Long-Term Assets

$0

Total Assets

$950,000

LIABILITIES & OWNERS EQUITY

Current Liabilities
Bank Loans
Accounts Payable

-$50,000
$0

Sales Tax Payable

$0

Total Current Liaabilities

-$50,000

Long Term Liabilities

Start up Loan
Mortgage on Building

$0
-$900,000

Long Term Liabilities

-$900,000

Total Liabilities

-$950,000

Owner's Equity
Brendan Pollok Capital

$0

Total Liabilities & Owner

Capital

$0

Pro forma income statement

Revenue
Your Monthly Sales

$12,000

Cost of Good/Service
Sold
cost of products/services
materials

-$2,000
$0

total cost of goods sold

-$2,000

Gross Profit

10,000

Operating Expenses
Startup Loan
Rent
Utilities'
Labor
Insurance
other expenses list them

-$2,500
$0
-$825
-$2,000
-$300
-$1,550

total expenses

-$9,175

Pre-Tax Profit

$2,825

Taxes 15%

-$424

Net Profit

$2,401

Sales forecasts ( in folder)

Break-even analysis
Break Even Analysis
Your Business Name: Holy Doughnut
Your Name: Brendan Pollok

Revenue
Your Monthly Sales

Price/Unit of Sale

Number of Units Sold

Total Cost of Goods/Services

Sold

CGS per Unit

Total Operating Expenses

$12,000

$8.00

$1,500

-$2,000

-$1.33

-$2,700

Break Even Unit Point

Business layout drawing

588