Remember, the coffee shop serves coffee to many people who work in the area, so he would certainly expect a major increase in his business volume.

This assignment is not looking for dollar figures, but primarily your justification on why the line items will change and what direction they will change, if any. You may make assumptions based on the increased sales volume and how it will affect income and expenses, if and when you do make these assumptions, please describe them and their effects on each line item.

These are the line items:

Income earned:

Expenses include:

Salaries

Rent

Depreciation

Supplies

Lease (on your refrigerator)

Tax

Interest (on loans currently held)

Insurance

Checklist:

 If and when you made assumptions, based on the increased sales volume and how it will affect income and expenses, please describe them and their effects on each line item.

 Given what you have assumed and projected, will the total expenses increase or decrease? Why?

 Given what you have assumed and projected, will the net profit increase or decrease? Why?

Directions

Respond to the line items above and the Questions provided in a minimum of 2 pages double-spaced in a Word document, written in APA.