Gross Profit Margins
(Size Small serving)*Selling Price $4.15
Cup $0.07
Yogurt $0.59
Toppings $0.16
Spoon $0.02
Napkin $0.01
Total Serving Cost $0.85 20.48 %
Gross Profit $3.30 79.51%
The customer has opened one year ago and experienced an average of 72 cups a day sold the first month to peak at 215 cups after 4 months of opening.
In this case the Frozen Yogurt business owner has to sell 37 small cups per day to break even. This covers the fixed expenses.
Sales of the non-yogurt related items (coffee, soda, water, etc.) constitute 21% of his sales.
Important Considerations: the customer opened in a low traffic area in a local strip mall that includes a restaurant, a small grocery store, and a few retail stores. The closest school is more that three miles away, movie theater and entertainment farther that 3 miles away.
* This example is based on our current Central Florida customer
* Prices and costs may vary based on different markets and product selection.
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