Case Name :      Caribbean Internet Cafe

Authors :           Murray J. Bryant, Michelle Theobalds

Source :             Ivey Publishing

Case ID :            998B02

Discipline :        Accounting

Case Length :    05 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

An entrepreneur is hoping to open Caribbean Internet Cafe in Kingston, Jamaica. He has gathered data on all the relevant costs: equipment, rent, labor, etc. He has also found a partner in the local telephone company, Jamaica Telecommunications Limited (JTL). JTL has provided equity and a long-term loan at favourable interest rates. He is now faced with the task of analyzing fixed, variable and start-up costs, contribution margin, and the concept of break-even to guide his decision.