Question
3. (W) Kelly Kitchens operates both franchised and company-operated restaurants under the brand name Kelly Kitchens. Income from operations, sales, and invested assets for
3. (W) Kelly Kitchens operates both franchised and company-operated restaurants under the brand name Kelly Kitchens. Income from operations, sales, and invested assets for both segments are provided as follows: Items Income from operations Sales Sales Invested assets Instructions) Company-Operated Franchised $180,000 $192,000 600,000 240,000 1,500,000 150,000 a) Determine the profit margin for company-operated and franchised restaurants. (Round to the nearest whole percent.) - 2 - b) Determine the investment turnover for company-operated and franchised restaurants. (Round to two decimal places.) c) Use the DuPont formula to determine the return on investment for company-operated and franchised restaurants. d) Kelly Kitchens is expanding to the Midwest. How would you advise management regarding the use of company-operated versus franchised restaurants in the expansion?
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