Unit 10: Instructor Graded Assignment

Making Financial Business Decisions

Unit 10 focuses on using financial methods and  statistical data to inform alternative selection within business decisions.  

For this Assignment you will create a  PowerPoint® presentation based on your “purchase” of a restaurant. The  following information is to be used to create this presentation. 

Your presentation is required to have at least one reference from a reliable source. This  means that you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers  and that only references from reliable sources will earn points. All resources  should be cited both as an in-text citation as well as being listed on a  reference slide in APA format.

NOTE: This  Assignment must be submitted as a Microsoft PowerPoint® document and uploaded  to the Dropbox for Unit 10

 All Assignments are due by Tuesday at 11:59 PM ET of the assigned unit.  

PPT Assignment (40 points)

You have always wanted to own a restaurant and  have now decided to go into business, purchase a building, and open an Italian  Bistro. The items listed below provide information regarding the purchases you  will need to make to start your business.

The building and the land it sits on will cost  $250,000 and you have 20% to put down on the property. Annual taxes are $6,000  and fire and liability insurance is $3,600.  

You have $150,000 of additional funds to  allocate for refurbishing the grounds, building structure, interior design, and  kitchen. 10% of the savings will be allocated to the grounds, 20% to the  building’s structure, 20% to update the interior design, and 50% for kitchen  installation and fire suppression systems.

 Tables are $200 each for 2 tops, $300 each for 4  tops, and $500 each for 6 tops. You plan to purchase eight (8) 2-top tables, six  (6) 4-top tables, and ten (10) 6-top tables. Chairs cost $50 each. You are  planning on being able to seat 100 people in the restaurant at a time and need  10 extra chairs. Silverware, tablecloths and napkins cost a total of $6,000,  serving utensils cost a total of $3,000, and glassware cost a total of $5,000

Place/plate settings cost $35 each. You need to  purchase three times the number of planned seats for turn-around and breakage.  (Remember you are planning for 100 people in your restaurant

Servicing carts, cooking equipment, prep tables,  storage containers, and other supplies will cost a total of $16,000.  

Research sggests that the average receipt total  per person is $12.80 and the average cost per meal is $6.86 for the Italian  restaurants in your area. The research also suggests that tables are turned  over for new customers between 13 and 21 times a day in your area, and that  restaurants have between 40% and 60% occupancy fill rate each day.

You mission is to  create a financial business plan explaining the initial outlay of funds this  business venture will cost.  

Create a  PowerPoint Presentation for this business venture.

The following is  an outline of how your slides should be presented.

Slide 1: This is your title  page. Include your name, project title, the course and section number and the  assignment due date.

Slide 2: This slide is  your introduction slide. This slide should summarize your new business venture,  describe your restaurant concept (i.e. casual dining, bight atmosphere, etc.)  and provide other helpful information. For example, restaurant name, what types  of appetizers, salads, soups, entrees, beer and wine availability, and desserts  you might serve, and hours of operation. Highlight what makes you restaurant  special.

Slide 3: This is your  building and real estate summary slide. This slide should include a small  picture or building plan drawing of the building, and summarize the purchase  price, down payment, and amount financed. The picture of the building can be  obtained from a real estate website, or from a building plan drawing available  on the Internet (be sure to cite this). This slide should also list the annual  tax and insurance amounts. It should also include the monthly mortgage payment  including principal, interest, taxes and insurance (PITI). The slide notes (section below the slide in  PowerPoint) should contain the steps you took to calculate the monthly  mortgage payment.

Slide 4 to 6: These  slides should include your start up expenses. On these slides you would list  the cost of purchasing all of the items listed in items 3, 4, 5 above (tables,  place setting, kitchen equipment, etc.). Here you can have fun and include  pictures of items, or include graphs of the cost. Be sure to list the total  start up expense required to open the restaurant somewhere.

Slide 7: This is your  revenue slide. Create revenues and food costs from your first 6 days of serving  food. Present the average receipt total per person, the average cost per meal,  number of times a table is sat or turned over, and fill rate or occupancy rate  to estimate your restaurants revenues. This is another place where a graph  could help illustrate your revenue potential.

Slide 8: Conclude your  presentation with the “wrap up” of the concept and any final thoughts you might  want to include.

Slide 9:  List any resources you have used for this project. Be sure to include at least  one reference  from a reliable source. Because many of  the concepts here involve reading from the textbook, remember to include a reference  for your textbook, as well. Make sure your citations are presented in APA  format.  

Proofread your  work carefully. Use Standard American English, and make sure  your presentation is grammatically correct and does not contain spelling  errors. Strive to display exceptional content, organization, style and  mechanics. For your pictures or building plan drawings, collectively they  should cover no more than a quarter of the page. Use 12 - 14 point font size,  with normal margins. Use bullet points if appropriate.  

You may submit your Assignment to the Math  Center for review. Tutors will not grade or correct the Assignment, but they  will provide guidance for improvement. In addition, tutors will not help you  find websites for the Assignment. Be sure to submit Assignments early enough to  receive feedback and make corrections before the Assignment due date (24 hour  turn-around times Monday-Thursday and 48 hour turn-around times on weekends are  typical). Email Assignments to: k..c@kaplan.edu. Please put “MM255 Assignment Review” in the subject  line of the message.