Caribbean Internet Cafe - 795 Words

1 Caribbean Internet Cafà © Performance Management and Control, ACC 287.5 David E. Platt, Ph.D. Caribbean Internet Cafà © Primary Case-Study Objectives 2 ï  µ ï  µ ï  µ Observe the diversity of business measurement issues. Introduce fundamental costing issues. Identify strategic and non-financial issues that are critical for decision making. Caribbean Internet Cafà © Cost Summary 3 ï  µ Here is a listing of costs to be incurred (pg. 3-4). How can we organize this data in a useful way? Equipment Waiter-tutors Manager Building lease Utilities Utility deposit Internet link Internet service Insurance Advertising, mktg, promo Pre-opening advertising Other up-front costs Miscellaneous admin/main Usage Qty Unit from Exhibit 1 180 hrs/wk 1 per month 1†¦show more content†¦Jamaica $ One-Time Costs Utility deposit Pre-opening advertising Other up-front costs Total Least Most ï  µ J$ J$ 7,000 20,000 120,000 147,000 Fixed Costs Waiter-tutors J$ Advertising, mktg, promo J$ Miscellaneous admin/main J$ Utilities J$ Insurance J$ Manager J$ Internet link J$ Building lease J$ * Loan interest J$ 40 10,000 50,000 15,000 10,000 40,000 10,000 30,000 1,250,000 Cost Unit per hour (x 180 x 52) per month per month per month per month per month per month per month at 10% concessionary rate What about investment in equipment? Annualized J$ J$ J$ J$ J$ J$ J$ J$ J$ 374,400 120,000 600,000 180,000 120,000 480,000 120,000 360,000 125,000 Caribbean Internet Cafà © Fixed Costs 6 ï  µ Depreciation is annual fixed cost. Investment General equipment Hardware and software Furniture and artwork China and flowers Total (exhibit 1) J$ J$ Jamaica $ Fixed Costs Waiter-tutors Advertising, mktg, promo Miscellaneous admin/main Utilities Insurance Manager Internet link Building lease * Loan interest ** Depreciation Total J$40 J$10,000 J$50,000 J$15,000 J$10,000 J$40,000 J$10,000 J$30,000 J$1,250,000 Est d Life (yrs) 573,250 407,750 340,000 105,000 1,426,000 Annualized 5 J$ 3 10 2 J$ Cost Unit per hour (x 180 x 52) per month per month per month per month per month per month per month at 10% concessionary rate from above 114,650 135,917 34,000 52,500 337,067 Annualized 374,400 120,000 600,000 180,000 120,000 480,000 120,000 360,000 125,000Show MoreRelatedCaribbean Internet Cafe920 Words   |  4 PagesCase Summary of: Carribean Internet Cafà © 1. What managerial issues should David consider before starting Caribbean Internet Cafà ©? Managerial Issues: Broadly defined as all issues which have an impact on a business manager’s decision. In this case, David should consider: - Political, Economic, Social, Technological (PEST) issues analysis: (i) Political: Bureaucracy and corruption may potentially slow down the pace of enhancing the necessary infrastructure for internet accessibility and usageRead MoreEssay on Caribbean Internet Cafe633 Words   |  3 Pagesto start an internet cafà ©. 2. David is also planning to hire a manager with Jamaican restaurant experience to help him with the majority of his business activities; this could be an issue as he hasn’t found anyone yet. He isn’t considering the possibility that he will not be able to find someone to fill the position. 3. David also seems to have little business knowledge when it comes to pricing. 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There are several things that Mr. Grant should examine before even looking at the projections given to him. Total capital is $2,250,000, $1,000,000 in investments and $1,250,000 in the form of a long-term loan. $1,573,000 is immediately spent leaving $677,000. If he has no customers, he can afford to remain open for 3 months. As well, theyRead MoreAccounting Case Essay1930 Words   |  8 Pagesorders over the internet site. How should this affect the activity cost driver rates calculated in Question 2? How would the switch affect Dakota’s profitability? Caribbean Internet Cafà © 1. What managerial issues should David Grant consider before starting the Caribbean Internet Cafà ©? 2. Define the fixed, variable and start-up costs in this case. 3. What is the contribution margin per customer? 4 How many customer visits will CIC need in order for the cafà © to break-even inRead MoreRe Sba1648 Words   |  7 PagesLibrary to get information on three symbolisms in Rastafari via the internet which I stored on a flash drive. On the 3rd of October 2011 at about 2:30 pm, I gave out 12 questionnaires to the Rastafararians in my community. On the 5th of October 2011, I collected back the questionnaires at about 4:35 pm, from which I gathered additional information on the study. On the 10th of October 2011 at about 10:00 am, I went to an Internet Cafà © to get pictures and additional information about the symbolism whichRead Morecafes monte bianco case analysis4234 Words   |  17 PagesExam†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....20% CASE ANALYSIS Students will work on the cases in groups of three (preferably) or four. Each group will be required to submit written Case Analysis (five pages plus Exhibits) for each of the following cases: 1. Cafes Monte Bianco: Building a Profit Plan 2. Compagnie du Froid, S.A. In addition, groups will pick four of the remaining cases (except Birch Paper) that interest them for a short write-up (2-3 pages plus exhibits). Case write-ups should include