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Three entrepreneurs were looking to start a new brewpub near Sacramento California called Roseville Brewing Company RBC Brewpubs provide two products to customers food from the restaurant segment

Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers—food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process. After months of research, the owners created a financial model that showed the following projections for the first year of operations: Sales Beer sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 781,200 Food sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,074,150 Other sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,650 Total sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,953,000 Less cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . 525,358 Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,427,642 Less marketing and administrative expenses . . . . 1,125,430 Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . $ 302,212 In the process of pursuing capital through private investors and financial institutions, RBC was approached with several questions. The following represents a sample of the more common questions asked: • What is the break-even point? • What sales dollars will be required to make $200,000? To make $500,000? • Is the product mix reasona

Apr 09 2020 View more View Less

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