8. Stella Daniels is a franchisee in the Bluebird Burgers franchise system. Stella wants to forecast...

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8. Stella Daniels is a franchisee in the Bluebird Burgers franchise system. Stella wants to forecast the franchise fees she will likely pay next year. Bluebird Burgers charges its franchisees a $500-per-month inspection fee, royalty fees of 6.5 percent of gross sales, and a national advertising fee of 2.25 percent of gross sales. Last year Stella's operation generated $1,235,575 in gross sales. Stella would like to forecast the fees she will pay if her next year's gross sales decline by 2.5 percent, as well as the fees she will pay if her gross sales increase by 2.5, 5.0, 7.5, 10.0, and 12.5 percent. Help Stella forecast her next year franchise fees under each of these gross sales assumptions, and then answer the questions that follow. Franchise Fees Last Year Revenue Next Year Revenue Change 2.5% 5.0% 7.5% 10.0% 12.5% 2.5% Revenue $1,235,575 Monthly inspection $500 fee Royalty fee 6.50% Marketing fee 2.25% Total franchise fees Total franchise fee % a. What was the total amount of franchise fees Stella paid last year? b. What was the total percent (rounded to two places) of her gross sales Stella paid in franchise fees last year? c. What is the total percent of her gross sales (rounded to two places) Stella will pay in franchise fees next year if her sales increase 10.0 percent? d. If her sales actually increase 10.0 percent next year, will the Total Franchisee Fee percent of sales Stella will pay her franchisor be higher, or lower, than it was last year? Why? 8. Stella Daniels is a franchisee in the Bluebird Burgers franchise system. Stella wants to forecast the franchise fees she will likely pay next year. Bluebird Burgers charges its franchisees a $500-per-month inspection fee, royalty fees of 6.5 percent of gross sales, and a national advertising fee of 2.25 percent of gross sales. Last year Stella's operation generated $1,235,575 in gross sales. Stella would like to forecast the fees she will pay if her next year's gross sales decline by 2.5 percent, as well as the fees she will pay if her gross sales increase by 2.5, 5.0, 7.5, 10.0, and 12.5 percent. Help Stella forecast her next year franchise fees under each of these gross sales assumptions, and then answer the questions that follow. Franchise Fees Last Year Revenue Next Year Revenue Change 2.5% 5.0% 7.5% 10.0% 12.5% 2.5% Revenue $1,235,575 Monthly inspection $500 fee Royalty fee 6.50% Marketing fee 2.25% Total franchise fees Total franchise fee % a. What was the total amount of franchise fees Stella paid last year? b. What was the total percent (rounded to two places) of her gross sales Stella paid in franchise fees last year? c. What is the total percent of her gross sales (rounded to two places) Stella will pay in franchise fees next year if her sales increase 10.0 percent? d. If her sales actually increase 10.0 percent next year, will the Total Franchisee Fee percent of sales Stella will pay her franchisor be higher, or lower, than it was last year? Why?