The price for a cup of Tim Hortons coffee runs from $1.13 for a small to $1.65 for a large. Donuts are sold at $0.80 each or $5.75 for a dozen. (Retrieved from http://www.muchmenus.com/timhortonsmenu.htm August 31, 2012).
Some of Tim Hortons' fixed costs are rent/mortgage on the buildings, insurance, and the cost of salaries for company executives. Some of their variable costs would include the cost of coffee beans and produce required to produce their donuts, sandwiches, bagels etc. Utilities can vary during different months of the year, as well as price fluctuations for oil, etc. and so this would be a variable cost. Labour is also a variable cost.
Tim Hortons is a very profitable company, as seen in the table below. Revenue is shown to be at $2,853 million with an operating margin of 19.6% as per their 2011 annual report.
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ReplyDeleteHow wonderful! Tim Hortons is indeed a very profitable company. I can see from their revenue table, how well they're progressing ahead. This type of error free financial statement improves a company financial overview for sure. Monitoring your metrics is definitely key and simple tools are a great way to do this (like PanXpan's finance summary modulefinance summary module).
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