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William Fox Bus 603 9/26/04 Financial Modeling for a Brewpub 1. What were potential investors and financial institutions concerned with when asking the questions in the case? Like all good capitalists, the investors and financial institutions in this case are concerned with the potential of recouping their initial investment in the Roseville Brewing Company and making a healthy profit. Their first question concerned the break-even point. This is the point at which revenue equals expenses and net income is zero. By asking for the break-even point, the potential investors are attempting to determine the strength of RBC's business model and the point at which they will make a profit. Making a profit is essential for both RBS to remain in business and for the potential investors to recoup their initial investment and make a profit themselves. Asking the sales dollars required to generate $200,000 and $500,000 centers upon the projected...

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