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Profit & Loss<br />
Boca Raton unit’s Earnings Before Depreciation, Amortization Interest and Taxes (EBITDA) is forecast to<br />
grow <strong>from</strong> $78,000 in year 1 to $178,000 in year 5.<br />
PROFIT & LOSS ($’000)<br />
Year 1 Year 2 Year 3 Year 4 Year 5<br />
Sales Before Taxes 600 780 908 958 1,008<br />
Cost of sales (COS) 150 195 227 240 252<br />
Freight costs 17 21 25 26 28<br />
Cost of products unsold 15 20 23 24 25<br />
EFFECTIVE COST OF SALES (ECOS) 182 236 275 290 305<br />
GROSS MARGIN 419 544 633 668 703<br />
VARIABLE COST<br />
Advertising 6 8 9 10 10<br />
Shopping bags (packaging/cutlery) 6 8 9 10 10<br />
Theft 0 0 0 0 0<br />
Credit Card Commissions 10 13 15 16 17<br />
TOTAL VARIABLE COST 22 29 33 35 37<br />
MARGIN ON VARIABLE COST 396 515 600 633 666<br />
FIXED COST<br />
RENT 62.6 68 74 76 79<br />
PAYROLL (incl. taxes & benefits) 237 315 350 360 390<br />
Phone & internet 1.8 1.8 1.9 1.9 1.9<br />
Utilities 5.0 5.1 5.2 5.2 5.3<br />
Insurance 1.0 1.0 1.0 1.0 1.1<br />
Travel 1.0 1.0 1.0 1.0 1.1<br />
Accounting & Legal 3.0 3.0 3.1 3.1 3.2<br />
Office expenses 1.0 1.0 1.0 1.0 1.1<br />
Other 5.4 5.5 5.5 5.6 5.6<br />
TOTAL FIXED COST 318 401 443 455 488<br />
EARNINGS BEFORE TAXES, DEPRECIATION & AMORTIZATION (EBITDA) 78 114 157 178 178<br />
Start-up expenses 12.8<br />
Depreciation & amortization 6.4 8.9 11.4 13.6 16.1<br />
Net interest expense (net interest in<strong>com</strong>e) 0 0 0 0 0<br />
EARNINGS BEFORE TAXES 59.1 105.0 145.7 164.2 162.0<br />
In<strong>com</strong>e taxes 11.6 24.2 35.7 41.8 41.0<br />
NET PROFIT 47.5 80.9 110.1 122.5 121.0<br />
THE EBITDA MARGIN IS FORECAST TO INCREASE TO 18% ACROSS THE NEXT FIVE<br />
YEARS AS INCREASING SALES WILL COVER MORE FIXED COSTS. NET PROFIT IS<br />
FORECAST TO GROW FROM $53,200 IN YEAR 1 TO $121,000 IN YEAR 5.<br />
French Bakery, LLC<br />
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