Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chilango is an award winning chain of 10 fast food Mexican restaurants based in London. In 2015 it achieved sales revenue of 6,969,185. Chilango plans

Chilango is an award winning chain of 10 fast food Mexican restaurants based in London. In 2015 it achieved sales revenue of 6,969,185. Chilango plans to open outlets in over 50 locations across the UK in the next 5 years. Forecast sales are shown in table 1.

Table 1: Forecast sales revenue for Chilango

2016 2017 2018 2019 2020

9,676,971 16,169,570 25,473,044 37,628,453 53,037,276

The key factors driving growth will be the opening of new restaurants as well as increasing sales in existing stores. The business will aim to increase sales volume through local marketing, improving food and operations and introducing online ordering.

1) Using the data in extract B calculate the forecast growth in sales revenue at Chilango from 2015 to 2020.

2) Assess two factors affecting the likely accuracy of Chilango's sales forecasts from 2016 to 2020.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

16th edition

125927716X, 978-1259687969, 1259687961, 978-1259277160

More Books

Students also viewed these Finance questions

Question

If so, what would you do?

Answered: 1 week ago