Question

Small Pizza business Take-out and Delivery with 5 employees operating cost on a start up business of $50,000.00. What is the breakdown to make at least triple that amount.

Answer 1

To make at least triple the initial operating cost of $50,000, the small pizza business would need to generate a total revenue of $150,000. The breakdown of costs to achieve this target will depend on factors such as labor, raw materials, rent, utilities, marketing, and other operational expenses. To break even and achieve an accounting profit of $150,000, the business would need to generate a total revenue of $170,000 plus $150,000, which equals $320,000.

Step-by-step explanation:

To make at least triple the initial operating cost of $50,000, the small pizza business would need to generate a total revenue of $150,000. The breakdown of costs to achieve this target will depend on various factors such as labor, raw materials, rent, utilities, marketing, and other operational expenses.

For example, if we assume that the annual costs for each employee amount to $30,000 (including salaries, benefits, and taxes), and other operating expenses add up to $20,000, we can calculate the total costs:

• Cost per employee: $30,000 x 5 employees = $150,000
• Other operating expenses: $20,000
• Total Costs: $150,000 + $20,000 = $170,000

To break even and achieve an accounting profit of $150,000, the business would need to generate a total revenue of $170,000 plus $150,000, which equals $320,000.