Off The Wall wrote:Trader wrote:morell wrote:The bar turns over about $220k a year, if not more and *just* breaks even. When I looked at the MYOB database I calculated that football provides, conservatively, about 65% of that revenue. Approx 50% goes in employee costs - wages, insurance, annual leave, super etc. My very strong position is that for 6 months of the year during footy season that bar should be run using volunteers of the football club and the profits after costs of sales returned to the football club.
I'll do the math: (220*0.65)*0.5=71.5
What number have you tried to calculate?
Are you saying $71,500 would be the profit if the footy club ran the bar using volunteers?
Need to also look at utility costs
You mention that the turn over is $220k pa, Footy club generate about 65%, if 50% goes on employee costs once you take into the cost of the stock you sell you are in a loss situation.
Calculation should be more like turnover of $220k at 100% mark up = $110k profit as your starting point not $220k