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5.0 Financial Plan
Cost of Goods Sold: The cost of bakery items is 20% of the selling price. The cost of Internet access is $250 per month, paid to Axelero. The cost of e-mail accounts is 25% of the selling price.
Fixture Costs: Fixture costs associated with starting JavaNet are the following: 11 computers = $20,000, two printers = $500, one scanner = $300, one espresso machine = $500 one automatic espresso grinder = $200, two coffee/food preparation counters = $250, one information display counter = $500, one drinking/eating counter = $75, sixteen stools = $300, six computer desks/chairs = $2,000, stationery goods = $200, two telephones = $200, decoration expense = $3,000.
Payroll Expense: JavaNet intends to hire six part-time employees at $5.75/hour and a full-time technician at $10.00/hour. The total cost of employing seven people at these rates for the first year is $7,240/month.
Rent Expense: JavaNet is leasing a 50 square metres facility at $.35/sq. metre. The lease agreement JavaNet signed specifies that we pay $1,750/month for a total of 36 months. At the end of the third year, the lease is open for negotiations and JavaNet may or may not re-sign the lease depending on the demands of the lessor.
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