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Brewpubs provide two products to customers food from the restaurant segment, and freshly brewed beer from the beer production segment. Both segments are typically in

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Brewpubs provide two products to customers food from the restaurant segment, and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to ste the beer brewing process. After months of research, the three entrepreneurs created a financial model that showed the following projections for the first year of operations Beer Food Other Costa Berber Fonds Othere other Waginal employees Supplies of U of Ohne os Total wat The Sures.chelin Egent and maintenance Ad Oceanero, mens and counting Property Direction Det er det Toda Oratis pole Required Round your answers to the nearest hundredth of a percent and nearest dollar where appropriate. (An example for percentage calculations is 0.434532 0.4345 = 43.45 percent; an example for dollar calculations is $378.9787 = $379.) a. What were potential investors and financial institutions concerned about when asking the questions listed previously? b. Why was the first financial model inappropriate for answering most of the questions asked by investors and bankers? Be specific c. Suppose you are deciding whether to invest in RBC. Which financial ratio would you use to check the reasonableness of RBC's projected operating profit as compared with that of similar businesses? d. Why is it difficult to answer the question "How much does a pint of beer cost to produce? Which costs would you include in answering this question? e. Perform CVP analysis by answering the following questions 1. What is the break-even point in sales dollars for RBC 2. What is the margin of safety in sales dollars for RBC? 3. Why is it not possible for RBC to find the break-even point in units? 4. What sales dollars would be required to achieve an operating profit of $200,000 and of $500,000? What assumptions are made in these calculations? f. Assume total revenue remains the same, but the product mix changes so that cach of the three revenue categories is weighted as follows: food 70 percent, beer 25 percent, other 5 percent. Prepare a contribution margin income statement to reflect these changes. How will this shift in product mix affect operating profit? 3. Although the financial model is important, what other strategic factors should RBC and its investors consider

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