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 see 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 sabes of total sales Food sales (55% of total e Other sales (5% of Total sales Varable casts Cof Beer (15% of beer sales Food L of food sales SETANO SP5.953 O % of other sale 32.225 38.300 Other credit card and miscelane 2% of Totalvable co Contribution margin 3.10.20 SA F Salaries manage che 40000 Equipment and building 30,000 Advertising 20,000 Other cleaning menus, and micelle 40000 Property 34,000 Depreciation 94000 Debt service Onterest de 112.000 Totaled co 530000 Operating 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 each 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? g. Although the financial model is important, what other strategic factors should RBC and its investors consider? 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 see 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 as 40% of total sale Food sales 5% of total sale Other (% of Varable casts Beer (15% of beer sales food 35% of food sales SETA SP5, 953 Other % of other sale 4250 ML100 Other credit card and mic Q2% of sale Totall Contribution margin 582215 Fed 40.000 Equipment and building maintenan 30,000 20,000 Other cleaning t 401000 Insurance and a 40.000 Property 34.000 Depreciation 94000 Debt service need Totaled co 112.000 520000 Operating 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 each 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? g. Although the financial model is important, what other strategic factors should RBC and its investors consider