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Expanding a One-Store Operation to a Two-Store Operation

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Case Study on Expanding a One-store Operation to a Two-store Operation

By admin on Nov 12, 2012 with Comments 0

Introduction

Buster’s will be participating in an exciting, growing market. Buster’s as a retail business that sells mixed bag of items are now planning to extend from one-store operation to a two-store operation. With the increasing demand of products offered by Buster’s the need of opening another store that occupies 1000 square feet of space is necessary. Aside from these Buster’s will also need to hire another two employees in accordance to the desired two-store operation.

Buster’s is a full line store, one stop shop for both retail and commercial business. We fill the need for over 12,000 different types of bags and …show more content…

Sept. Oct. Nov. Dec. Jan. Feb. March

Inv. Sales $ 22,000 $ 30,000 $ 37,000 $ 43,000 $ 48,000 $ 49,000 $ 48,000 $ 43,000 $ 55,000 $ 49,000 $ 39,000 $ 45,000 Core & Serv. $ 2000 $ 2000 $ 3000 $ 3000 $ 5000 $ 5000 $ 5000 $ 5000 $ 7000 $ 7000 $ 7000 $ 7000

Cost of Goods $ 11,500 $ 15,500 $ 19,000 $ 22,500 $ 26,000 $ 27,000 $ 26,000 $ 23,500 $ 30,500 $ 27,500 $ 22,500 $ 25,500 Gross Margin $ 12,500 $ 16,500 $ 21,000 $ 23,500 $ 27,000 $ 27,000 $ 27,000 $ 24,500 $ 31,500 $ 30,500 $ 25,500 $ 26,500 Gross Margin % 52.08% 51.56% 52.50% 51.09% 50.94% 50.00% 50.94% 51.04% 50.81% 52.59% 53.13% 50.96%

Payroll & taxes $ 9,500 $ 9,500 $ 9,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 Loan Repayment $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 $ 2,600 Rent or Lease $ 3,500 $ 3,500 $ 3,500 $ 3,500 $ 3,500 $

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