Business, 30.11.2021 23:30, zuleromanos
Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled tiic following information relating to the franchise:
a. A suitable location in a large shopping mall can be rented for $3,500 per month.
b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15-year life and an $18,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation.
c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $300,000 per year. Ingredients would cost 20% of sales.
d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 12.5% of sales.
Required:
(Ignore income taxes.)
1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet.
2. Compute the simple rate of return promised by the outlet. If Mr. Swanson requires a simple rate of return of at least 12%, should he acquire the franchise?
3. Compute the payback period on the outlet. If Mr. Swanson wants a payback of four years or less, will he acquire the franchise?
Answers: 2
Business, 21.06.2019 13:50, brewerroserb
Ateam of engineers has decided to design a new shoe for people suffering from a painful foot condition. what should the engineers do during the planning stage of their project? a. look at the trial's results to see how the design can be improved. b. build a variety of shoe models. c. have patients wear the new shoe in an experimental trial to see if symptoms improve. d. estimate how much potential consumers would be willing to pay for this new shoe.
Answers: 1
Business, 22.06.2019 07:10, carlybeavers50
In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.
Answers: 2
Business, 22.06.2019 18:00, theflash077
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense froz...
Spanish, 09.11.2020 22:20
Biology, 09.11.2020 22:20
Mathematics, 09.11.2020 22:20
English, 09.11.2020 22:20
Advanced Placement (AP), 09.11.2020 22:20