Question
Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler's continuing poor performance, CFG is deciding whether or not to close
Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler's continuing poor performance, CFG is deciding whether or not to close the Sizzler restaurants and re-invest into KFC to continue its growth. CFG's quarterly revenues are $468,561 while Sizzler remains open, and they estimate revenues will increase to $520,206 every three months if the divestment of Sizzler goes ahead. Running costs will remain constant at $116,521 every three months in either case. The cost of the divestment of sizzler would be $85,253 spread evenly over one year.
What is CFG's economic profit (every three months) after divestment? Answer number to the nearest whole number and include a negative sign if it is an economic loss (with no decimal places, $ sign, spaces or commas).
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