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Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing independent store that is available for sale. The
Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing independent store that is available for sale. The seller, Mark Preradovic, has operated the store for three years and has assured Christine that his location. although smaller than the average store, is an above average performer for the industry. Mark has provided the financial data shown below for his store. Mark's Yogourt Plus Store Selected Financial Results Year 1 Year 2 Year 3 Store size: 1,200 square feet (111 square metres) Sales $240,000 $280,000 $330,000 Gross margin 160,000 190,000 230,000 Other expenses 150,000 180,000 200,000 Net income $10,000 $10,000 $30,000
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