21 Questions
What is the primary reason for choosing a unique name for your cafe?
To reflect the vision and differentiate from competitors
How will the cost of furniture and equipment affect the cafe's operation and perception?
It may affect how customers view the cafe and its offerings
What is the depreciation period for the furniture and equipment purchased for the cafe?
5 years
How many full-time managers does each store start with to cover Monday through Friday?
Two managers
What is the total annual rent for the space occupied by the coffee shop?
$24,000
What is the consequence of increasing prices according to the text?
Customer frustration and disappointment
How much is the monthly rent due for the coffee shop?
$2,000
What is required as a deposit for utilities for the coffee shop?
$500
According to Jane, what are the key factors that will drive long-term demand for the coffee shop?
Quality of experience and price
What is the reason mentioned in the text for expecting the coffee shop to be a success?
Good location near retailers and the business school
When are employees required to set-up and clean-up at the cafe?
Set-up for an hour before the cafe opens and clean-up for an hour after the cafe closes
How many shots of espresso does a small cup use?
1 shot
What is the estimated amount of coffee (in pounds) required for each shot of espresso?
1/64 pound
What happens to fresh coffee grounds after use?
They are discarded immediately
What is the consequence if there is not enough logo cups available?
Standard cups are purchased at a slightly higher cost
What is the fate of any remaining coffee at the end of the week?
Discarded for quality and freshness reasons
What happens if there is a shortage of coffee during the week?
Local purchases are made at a higher cost
What is the purpose of the Income Statement?
To demonstrate revenues and expenses on an accrual basis
When are items expensed on the Income Statement?
In the period they are used
What is the purpose of a Balance Sheet?
To show assets, liabilities, and equity
Which financial document provides a snapshot of a business at a point in time?
Balance Sheet
Test your knowledge on calculating commercial lease expenses including rent, deposit, and utilities. Understand the financial obligations and responsibilities of a lessee in a commercial lease agreement.
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