This project is part of professor John Tan's class, Managerial Accounting ACCT 6215. This project builds solid steps in the project decision making whether you should open the business or not. Hopefully,it will benefit you and if you have any inquiries, please do not hesitate to ask.

1. SUN DEN SHOP ~ DIM SUM
Andrea Parma, Dalia Hassan, Doaa Abdou, Can Le, Rabbia Khan
點心

2. Mission
We are committed to offer healthy and tasty
dim sum for all.
Motto: Eat more, care less

3. Product Line
Type Item
Vegetarian Steamed Mushroom Bun
Chicken Steamed Chicken Bun
Shrimp/pork Steamed Shrimp Bun
Beverages Hot Green tea

4. Strategic positioning
Our target customers are students, working
professionals, and families.
Our strategy is to offer gourmet Dim Sum that is
healthy, delicious, and appealing to the public
taste.

5. Why we are different
• We are a to-go shop offering handmade
gourmet food.
• Nearest to-go shop serving the same
product is half a mile away.
• We are the earliest dim sum shop to open
in the morning (competitor opens at 11
am)
Source: https://www.orderaheadapp.com/places/dumpling-express--berkeley-ca

6. Incorporation & Business License
Cost of incorporation: (in Delaware)
a. $400 Filing fee
b. $50 expedite Fee
c. $50 Federal Ex
d. $300 per year Renewal
Business License fee in Berkeley
a. $50 One time fee
b. $51 Permit tax
c. $24 filing fee
d. $1 Handicapped Information
• Health Depattment permit $598
• Fire inspection fees: $93.50 per quarter hour. Initial takes 1 hour and cost $374
Building Department Permit Fee: estimate to be $2000
Our business will be incorporated as S corporation because it is considered a separate entity which
our financial liabilities.

7. Location: 2312 Fulton Street, Berkeley CA 94704

8. Location - Demographics (2015)
Population 1-mile 3-mile 5-mile
Total Population 58,815 213,507 380,759
Households 22,032 88,176 161,712
Total Daytime Population 106,671 271,700 471,359
Income 1-mile 3-mile 5-mile
Household Income: Median 48,193 68,909 65,453
Household Income: Average 74,548 104,807 101,647
Retail Sales Volume 1-mile 3-mile 5-mile
Restaurant Expenditures 23,197,889 105,347,289 191,646,152

9. Location Advantages
• Brand new construction on the NW corner of Fulton and Durant
• One block to UC Berkeley Campus with 45,000 daytime population
• One block off Shattuck - downtown Berkeley’s main commercial street
• Close to downtown Bart with over 22,000 daily riders

10. Rent & floor plan
Kitchen
Serving Area
Toilet
Space 1500 Sq ft
Rate $ 2.75 per Sq. ft.
Total Rent Per
Month
$4,125
Cash ONLY
Toilet for
Staff ONLY

11. Equipments

12. Toilet & cleaning equipment
Item Total price
Sink & toilet $ 332.90
Sanitation dispensers $ 78.48
Ceiling lighting $ 72.00
Hand Dryer $ 270.00
Caution Wet Floor $ 11.58
Brushes, brooms, Mop system $ 59.73
Total Cost $ 824.69
Serving area
Item Total price
Service counters & shelves $ 1,547.00
Tables & chairs $ 198.00
Hot food display $ 510.95
Cash registeration $ 589.00
Microwave oven $ 89.10
lighting & Led Open sign $ 374.79
Dispensers (napkin, honey) $ 208.11
Water boiler $ 134.08
Fans $ 341.00
Chafing Dish $ 166.99
Total Cost $ 4,159.02
Equipments

13. Total cost of Equipment:
$46,885
Kitchen
Item Total price
Flour Mixers & mixing bowls $ 12,010.19
Steaming Equipment $ 6,300.80
Refrigerator $ 2,045.00
Stove top $ 1,630.00
Hoods& fans $ 6,540.55
work tables& shelving $ 8,169.95
Cleaver &knife set& boards $ 469.17
Meat grinder $ 2,032.06
Storage Containers $ 245.57
Kitchen cart $ 524.00
Wok sets $ 67.83
Sink & Faucet $ 961.26
Sanitation $ 296.23
Sccales & thermometer $ 180.59
Trash cans $ 79.98
Ceiling lighting units $ 347.80
Total Cost $ 41,900.98
Equipments

14. Direct Materials - Dim Sum Buns
Shrimp & Pork (24 piece)
Item per lb. Price
chopped pork 0.500 $2.07
can shrimp 0.250 $2.11
salt 0.031 $0.03
green onions (2) 0.300 $0.12
ginger root 0.031 $0.27
light soy sauce 0.031 $0.05
rice wine vinegar 0.031 $0.09
vegetable oil 0.031 $0.02
white sugar 0.031 $0.03
water 0.047 0
Active dry yeast 0.03 $0.14
White sugar 0.03 $0.03
All-purpose flour 0.13 $0.07
water 0.13 $0.00
warm water 0.25 $0.00
all purpose flour 0.75 $0.39
Salt 0.01 $0.01
White sugar 0.06 $0.07
Vegetable oil 0.03 $0.02
Baking powder 0.02 $0.07
Total $5.57
Cost per 1 bun $0.23
Vegan (24 piece)
Item per lb. Price
garlic 0.012 $0.10
fresh ginger 0.020 $0.17
Shitake mushroom 0.600 $9.60
rice wine vinegar 0.125 $0.34
sweet chilli sauce 0.125 $0.41
low-salt soy sauce 0.125 $0.21
green onions (6) 0.018 $0.01
fresh red chilli (2) 0.008 $0.00
sesame oil 0.063 $0.34
Active dry yeast 0.03 $0.14
White sugar 0.03 $0.03
All-purpose flour 0.13 $0.07
water 0.13 $0.00
warm water 0.25 $0.00
all purpose flour 0.75 $0.39
Salt 0.01 $0.01
White sugar 0.06 $0.07
Vegetable oil 0.03 $0.02
Baking powder 0.02 $0.07
Total $11.96
Cost per 1 Bun $0.50
Chicken (24 piece)
Item per lb. Price
Chicken mince 1.650 $2.48
Garlic clove (3) 0.009 $0.07
Brown sugar 0.094 $0.18
Grated ginger 0.094 $0.80
Oyster sauce 0.188 $0.65
Soy Sauce 0.094 $0.16
Sesame Oil 0.188 $1.02
Active dry yeast 0.03 $0.14
White sugar 0.03 $0.03
All-purpose flour 0.13 $0.07
water 0.13 $0.00
warm water 0.25 $0.00
all purpose flour 0.75 $0.39
Salt 0.01 $0.01
White sugar 0.06 $0.07
Vegetable oil 0.03 $0.02
Baking powder 0.02 $0.07
Total $6.13
Cost per 1 Bun $0.26

15. Direct Materials - Beverages
Green tea
Item Quantity Price
Compostable PLA paper cups 1 unit $0.09
White Hot Paper Cup lid 1 unit $0.03
Coffee Jacket / Coffee Sleeve 1 unit $0.04
Green tea 1 tbsp. $0.12
Cost per 1 cup $0.28

16. Labor
2 Full- Time Employees 15 Part - Time Employees
7 hours/weekday
Full - Time
5:00 -
9:00am
9:00am -
1:00pm
1:00 -
5:00pm
Total working
hours
Monday 1 2 1 14
Tuesday 1 2 1 14
Wednesday 1 2 1 14
Thursday 1 2 1 14
Friday 1 2 1 14
5 hours/weekend
Full – Time
5:00 -
9:00am
9:00am -
1:00pm
1:00 -
5:00pm
Total working
hours
Saturday 1 1 0 5
Sunday 1 1 0 5
4 hours/weekday
Part – Time
5:00 -
9:00am
9:00am
1:00pm
1:00 -
5:00pm
5:00 -
9:00pm
Total working
hours
Monday 2 1 1 3 24.5
Tuesday 2 1 1 3 24.5
Wednesday 2 1 1 3 24.5
Thursday 2 1 1 3 24.5
Friday 2 1 1 3 24.5
5 hours/weekend
Part - time
5:00 -
10:00am
10:00am -
3:00pm 3:00 - 8:00pm
Total working
hours
Saturday 5 2 2 44.5
Sunday 5 2 2 44.5
Employee
Total hours/
week
Total hours/
month working hour Basic salary Salary +tax month
Part-time 211.5 846 $ 13 $ 10,998 $ 11,941.10
Full-time 80 320 $ 25 $ 8,000 $ 8,622.49
Total $ 18,998 $ 20,563.59

17. Labor
Full - Time Cost
# of employees 2
Basic Salary $ 8,000
FICA
Social Security Tax $ 59.52
MediCare Tax $ 13.44
Unemployment insurace tax $ 8.42
Employment Traning Tax $ 0.25
State Disability insurance $ 33.25
Medical insurance $ 118.94
Dental insurance $ 42.48
401 K $ 240.00
Workers comp insurance $ 106.19
Total $ 8,622.49
Part - Time Cost
Basic Salary per hour $ 13
# of hours 846.00
Total Basic Salary $ 10,998
FICA
Social Security Tax $ 681.88
MediCare Tax $ 153.97
Unemployment insurace tax $ 21.55
Employment Traning Tax $ 0.63
State Disability insurance $ 85.07
Total $ 11,941.10

18. Overhead - variable (monthly Material)
Kitchen
Item # of units
Total
price
Disposable Aprons 10 $19.90
Trash bag 2 $153.98
Exam Gloves 3 $59.97
Wax paper for the buns 0.05 $15.91
Paper towels 1 $27.69
Round Dish Brush Scrubber, 9" 2 $12.66
Continental Scrubber Sponge 1 $33.65
Cleaner Degreaser Disinfectant 1 $39.96
Purell NXT Instant Hand Sanitizer Refill 1 $76.99
Total Kitchen $440.71
Serving area
Item # of units Total price
Honey 1 $15.20
Paper bags & boxes for serving 5 $35.00
Tall-fold dispenser Napkin 1 $16.99
7 1/2" Unwrapped Black Stirrer 1 $2.49
Total Serving area $69.68
Restroom
Item # of units Total price
1/2 Fold Toilet Seat Cover White 3 $96.00
Sanitary Napkin Receptacle Bags 3 $11.97
Wall-Mount Dispenser 0.5 $9.00
Toilet Paper 0.5 $28.45
Total Restroom $145.42
Cleaning utilities
Item # of units Total price
Monogram Blue Griddle Pad Holder 0.5 $4.60
Acid Bathroom 0.5 $3.75
Heavy Duty Microfiber Replacement Pad 18" 3 $21.00
Total Cleaning $29.35
Total Overhead Material/ month
$685

19. Overhead (monthly)
Variable overhead
Variable Overhead materials $ 685
Water/ Sewage $ 300
Gas $ 200
Electricity $ 1,300
Total $ 2,485
Fixed Overhead Monthly
Salary & taxes - 2 Full time $ 8,622
Rent $ 4,125
Business Liability Insurance $ 117
Insurance on Equipments $ 500
Insurance for fire and flood $ 33
Worker’s comp insurance $ 500
Waste management $ 60
Security/camera $ 100
Depreciation $ 781
total $ 14,839
Utilities estimations are based on information
from an interview with a Dim Sum restaurant
owner.

20. Customer Flow
0
100
200
300
400
7:00-8:00
8:00-9:00
9:00-10:00
10:00-11:00
11:00am-
12:00pm
12:00-1:00
1:00-2:00
2:00-3:00
3:00-4:00
4:00-5:00
5:00-6:00
6:00-7:00
7:00-8:000
8:00-9:000
#ofcustomers/hour
Average Pedestrian flow /day Customers servied Weekday Customers servied Weekends
Average # of pedestrian/ hour = 159 pedestrian
Based on our field trip, during the weekdays we will serve 30% of the pedestrian flow while during weekends we will serve
20% only.
Operating
hours/day
Operatin
g
min/day
time cst take to
come in and out
(min)
Total # of
cst /day
Total # of
cst/hour
Total # of
buns/hour
% of
tea/hour
Total # of
tea /hour
Total # of items
sold /hour
Total # of items
sold/day
Total # of items
sold/month
11 660 4 165 15 60 15% 9 69 759 22,770

21. Pricing (Cost Based - Breakeven)
Monthly cost
Variable cost
direct material $ 7,410
direct labor $ 11,941
manufacturing overhead $ 2,485
selling and administrative (0.5%) $ 191
Total Variable Cost $ 22,027
Fixed cost
manufacturing overhead $ 14,839
selling and administrative $ 150
Total Fixed Cost $ 14,989
Total Cost $ 37,017
item
Variable cost
per item Pricing
contribution
margin sales mix weight
vegan $1.14 $ 2 $ 0.86 30% $ 0.26
chicken $0.90 $ 1.6 $ 0.70 30% $ 0.21
shrimp $0.87 $ 1.5 $ 0.63 27% $ 0.17
tea $0.92 $ 1.5 $ 0.58 13% $ 0.08
Total 100% $ 0.71
item breakeven point/ month Break even $ Sales/month
Vegan 6,242 $12,484
chicken 6,251 $ 10,002
shrimp 5,626 $ 8,439
tea 2,718 $ 4,077
Total
(Break even)
20,837 $ 35,001
Estimated
Sales
22,770 $ 38,249

22. Pricing (Profit)
Our Price is more expensive for three reasons:
• The quality of our raw material is higher.
• Our Vegan buns are totally differentiated form theirs.
• They sell per package (4,8,12 pieces), but we sell per piece.
Competitors’ average price $ 0.80
Our average price $ 1.70
Difference $ 0.90
Dumpling Express Steamed menu
Contribution income statement
Sales $ 38,249
Variable cost $ (22,028)
Contribution Margin $ 16,221
Fixed cost $ (14,989)
Profit $ 1,232
Total profit/ # of units $ 0.05
Estimated Profit Margin 3%
ROA 3%

23. Financial Statements

24. Initial Cost
Initial cost first year Comments Cost
Total equipment cost $ 46,885
Place Decorations 1,500 SQ ft *$50/ SQ ft $ 75,000
Rental deposit 2months $ 8,250
4 months rent 4months $ 16,500
Full time Salary 4months $ 34,490
Part- time salary 3months 50% full capacity $ 17,912
Overhead materials 3months 50% full capacity 75% Cash $ 771
Raw material for the first 3 months 3months 50% sales 75% Cash $ 8,336
Utilities 4months 50% full capacity $ 4,970
insurance 6months $ 6,900
waste, security 4months $ 640
Selling expenses 4months 125% full capacity $ 1,706
Contingency/ beginning Advertisement 10% $ 22,236
Total initial cost for the business $ 244,596

25. Financial Statements – Cash Flow
Variable overhead % 25% 25% 50% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Sales% 0% 25% 50% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Cashflow 1st year Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Total
Starting cash $244,596 $98,851 $88,428 $82,109 $79,892 $81,779 $83,202 $84,626 $86,049 $87,472 $88,896 $90,319 $91,742
Direct materials 75% $0 ($1,389) ($2,779) ($4,168) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($58,355)
Direct materials 25% $0 $0 ($463) ($926) ($1,389) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($17,599)
Direct Labour $0 ($2,985) ($5,971) ($8,956) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($125,382)
Variable overhead ($621) ($621) ($1,243) ($1,864) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($26,094)
Sales (cash only) $0 $9,562 $19,124 $28,686 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $401,611
Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)
Startup cost ($130,135)
Ending Cash $98,851 $88,428 $82,109 $79,892 $81,779 $83,202 $84,626 $86,049 $87,472 $88,896 $90,319 $91,742 $93,166 $93,166

26. Financial Statements – Cash Flow
Variable overhead % 100% 100% 100% 100% 100% 100% 101% 101% 101% 101% 101% 101% 101%
Sales% 100% 100% 100% 100% 100% 100% 101% 101% 101% 101% 101% 101% 101%
Cashflow 2nd year Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18Total 2018
Starting cash $91,742 $93,166 $94,589 $96,013 $97,436 $98,859 $100,283 $101,889 $103,476 $105,064 $106,651 $108,239 $109,826
Direct materials 75% ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,558) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($5,613) ($67,080)
Direct materials 25% ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,853) ($1,871) ($1,871) ($1,871) ($1,871) ($1,871) ($1,871) ($22,341)
Direct Labour ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($11,941) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($12,061) ($144,129)
Variable overhead ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,485) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($2,510) ($29,996)
Sales (cash only) $38,249 $38,249 $38,249 $38,249 $38,249 $38,249 $38,631 $38,631 $38,631 $38,631 $38,631 $38,631 $38,631 $461,661
Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)
Startup cost $0
Ending Cash $93,166 $94,589 $96,013 $97,436 $98,859 $100,283 $101,889 $103,476 $105,064 $106,651 $108,239 $109,826 $111,414 $111,414
Variable overhead % 101% 101% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102%
Sales% 101% 101% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102% 102%
Cashflow 3rd year Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19Total 2019
Starting cash $109,826 $111,414 $113,001 $114,772 $116,523 $118,275 $120,027 $121,778 $123,530 $125,281 $127,033 $128,785 $130,536
Direct materials 75% ($5,613) ($5,613) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($5,669) ($67,969)
Direct materials 25% ($1,871) ($1,871) ($1,871) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($1,890) ($22,638)
Direct Labour ($12,061) ($12,061) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($12,180) ($146,040)
Variable overhead ($2,510) ($2,510) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($2,535) ($30,393)
Sales (cash only) $38,631 $38,631 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $39,014 $467,781
Fixed cost ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($14,989) ($179,867)
Startup cost
Ending Cash $111,414 $113,001 $114,772 $116,523 $118,275 $120,027 $121,778 $123,530 $125,281 $127,033 $128,785 $130,536 $132,288 $132,288

27. Financial Statement – Income Statement
Income Statement First year - 2017
Sales $401,611
COGS
Direct Material ($75,954)
Variable Overhead ($8,222) ($84,175)
Total Gross Profit $317,435
Operating Expenses
Salaries - 2 Full time ($103,470)
Direct Labor - Part time Salary ($125,382)
Rent ($49,500)
Utilities ($17,872)
Insurances ($13,800)
Waste management ($720)
Security/camera ($1,200)
Depreciation ($9,377)
Total Operating Expenses ($321,321)
Net Icome Before Taxes ($3,885)
Taxes 0% $0
Net Income (Loss) ($3,885)
Our Income Statement in
the first year shows net loss
($3,885) due to the first 3
months operation.

28. Financial Statement – Income StatementIncome Statement 2nd year - 2018
Sales $461,661
COGS
Direct Material ($89,421)
Variable Overhead ($8,222) ($97,643)
Total Gross Profit $364,018
Operating Expenses
Salaries - 2 Full time ($103,470)
Direct Labor - Part time Salary ($143,293)
Rent ($49,500)
Utilities ($21,774)
Insurances ($13,800)
Waste management ($720)
Security/camera ($1,200)
Depreciation ($15,003)
Total Operating Expenses ($348,760)
Net Icome Before Taxes $15,258
Taxes 0% $0
Net Income $15,258
Income Statement 3rd year - 2019
Sales $467,781
COGS
Direct Material ($90,607)
Variable Overhead ($8,222) ($98,829)
Total Gross Profit $368,952
Operating Expenses
Salaries - 2 Full time ($103,470)
Direct Labor - Part time Salary ($143,293)
Rent ($49,500)
Utilities ($22,172)
Insurances ($13,800)
Waste management ($720)
Security/camera ($1,200)
Depreciation ($9,002)
Total Operating Expenses ($343,157)
Net Icome Before Taxes $25,796
Taxes 0% $0
Net Income $25,796

29. Financial Statement – Balance Sheet
Dim Sum Project
Balance Sheet December 2017
Assets Liabilities and Stockholders' Equity
Current Assets Current Liabilities
Cash $ 93,166 Accounts Payable
Accounts receivable net $ - Wages
Merchandise Inventory $ - Full-time
$ 93,166 Part-time
Fixed assets Taxes Payable
Equipment $ 130,135
Buildings (Rent Deposit)
Less accumulated depreciation $ (9,377) Stockholders'equity
Net Fixed Assets $ 120,758 Capital Stock $ 244,596
Retained earnings VOH $ (26,715)
FOH $ (194,856)
Total Assets $ 213,924 DM $ (75,954)
DL $ (125,382)
Dep $ (9,377)
SALES $ 401,611
$ 213,924

30. Financial Statement – Balance Sheet
Dim Sum Project
Balance Sheet December 2018
Assets Liabilities and Stockholders' Equity
Current Assets Current Liabilities
Cash $ 111,414 Accounts Payable
Accounts receivable net $ - Wages
Merchandise Inventory $ - Full-time
$ 111,414 Part-time
Fixed assets Taxes Payable
Equipment $ 130,135
Buildings (Rent Deposit)
Less accumulated depreciation $ 24,380 Stockholders‘ equity
Net Fixed Assets $ 105,755 Capital Stock $ 213,924
Retained earnings VOH $ (29,996)
FOH $ (179,867)
Total Assets $ 217,169 DM $ (89,421)
DL $ (144,129)
Dep $ (15,003)
SALES $ 461,661
$ 217,169
Dim Sum Project
Balance Sheet December 2019
Assets Liabilities and Stockholders' Equity
Current Assets Current Liabilities
Cash $ 132,288 Accounts Paybale
Accounts receivable net $ - Wages
Merchandise Inventory $ - Full-time
$ 132,288
Part-time
Fixed assets Taxes Payable
Equipment $ 130,135
Buildings (Rent Deposit)
Less accumulated deprecaiiton $ 33,382 Stockholders‘ equity
Net Fixed Assets $ 96,753 Capital Stock $ 217.169
Retained earnings VOH $ (30,393)
FOH $ (179,867)
Total Assets $ 229,040 DM $ (90,607)
DL $ (146,040)
Dep $ (9,002)
SALES $ 467,781
$ 229,041

31. Exit Strategy (Plan)
first 3 months of
our operation
• Don’t increase production.
• decrease price (1 cent per bun)
• Promotions (selling packages)
After 3 months
• Decrease our selling price
• Operate by 25% of our full capacity to decrease variable cost.
After 6 months
• Pay lease cancellation penalty and Sell equipment
• Resolve financial obligations (debts, close bank account)
• File dissolution documents, cancel registration and permits.
• Comply with employment and labor law.
• Maintain records
If we failed in reaching the breakeven point:

32. Project Evaluation
It is risky to implement this project for the following reasons:
• The expected profit is very low.
• It is hard for our selling prices to compete with the competitors prices.
• Our current limited product line is unlikely to survive in the market.
Recommendations:
• Improve the product line by adding various types of Dim Sum.
• Cut the cost of direct material and direct labor.
• Rent a cheaper shop.

34. Rent Details
Space 1500 Sq ft
Rate $ 2.75 per Sq ft
Total Lease Rental Per Month $4,125
Rental Deposit 2 Months
Penalty for cancellation Losing deposit
Lease Duration 1 year
Fire marshal approved design Yes

35. Sales Estimation
Cost & Sales Direct Material Sales
Units % # of units/month cost per bun Total DM cost (month)Sales Total sales
Vegan 30% 6,831 $0.50 $ 3,406 $ 2.00 $ 13,662
chicken 30% 6,831 $0.26 $ 1,745 $ 1.60 $ 10,930
shrimp 27% 6,148 $0.23 $ 1,427 $ 1.50 $ 9,222
tea 13% 2,970 $0.28 $ 838 $ 1.50 $ 4,455
Total 100% 22,770 $1.27 $ 7,415 $ 38,268

36. Variable Overhead/ bun
Product Type vegeterian chicken shrimp tea
Direct Material $0.50 $0.26 $0.23 $0.28
Direct Labor $0.52 $0.52 $0.52 $0.52
Variable Overhead
Manufacturing
overhead $ 0.11 $ 0.11 $ 0.11 $ 0.11
Selling &
administrative $ 0.01 $ 0.01 $ 0.01 $ 0.01
Total Cost/bun $1.14 $0.90 $0.87 $0.92