You are required to answer the following questions:
1. Perform a break-even analysis of the World Trade Center location using information
presented in the case (Excel). How many cakes would Lady M need to sell in a year to
break-even? Does this number seem feasible?
2. Assuming sales in year one are break-even, how quickly would sales need to grow after
the first year to pay the start-up costs within 5 years (Excel)? Is this growth rate feasible?
3. What is your recommendation? Should Romaniszyn open the new location in the World
Trade Center?

Questions 1 & 2 have two parts and the part marked with ‘Excel’ should be done on Excel.

The excel part for number one is completed

Requirements: 2-3 pages