Reference no: EM133170069
Question #1: Break-even analysis Complete a break-even analysis for Miho's bagel shop. This time let's assume she will sell three kinds of bagels. The price, variable costs and product mix percentage for each kind is presented in the table below.
Please help Miho figure out the breakeven point for each kind of bagel. (Hint: we need to first figure out the weighted average contribution margin)
Question #2: Read the above scenario, think about:
- What you would do if you were Miho, sell or borrow?
- If Miho decides to sell, what percentage of her equity she should offer Amy in exchange for $30,000? Please read the next page before answering the questions. A quantitative analysis in support of your answer is preferred. You may try the discounted future cash flows approach or an online calculator (see above) to calculate the business value first, then decide on the percentage.
Question #3: Please read the story of Johnny Cupcakes at
Please discuss the following questions:
- Discuss how the term "bootstrapping" applies to Johnny Cupcake.
- What financial challenges faced by Johnny Cupcakes? And how did Johnny Cupcakes do to financially manage the business?
Attachment:- Break-even analysis.rar