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Fixed Costs Amount Full Time Employee Expenses 84,000 Casual Employee Expenses 70,874 On-costs 46,462 Property Outgoings 19,200 Rental costs 42,000 Interest Expense 9,000 Depreciation 30,000

Fixed Costs

Amount

Full Time Employee Expenses

84,000

Casual Employee Expenses

70,874

On-costs

46,462

Property Outgoings

19,200

Rental costs

42,000

Interest Expense

9,000

Depreciation

30,000

Total Fixed Costs

301,536

Variable Cost per Unit

Unit Price of Good

$7.00

Cost of Goods Sold

$1.87

Royalty

$0.56

Marketing Contribution

$0.49

Total Variable Cost per Unit

$2.92

Contribution Margin

$4.08

One year

Berry Bang's sold

1750

91000

Revenue

$7.00

637,000

Cost of Sales

$1.8700

170,170

Royalty

8.00%

50,960

Marketing

7.00%

44,590

Total Variable Costs

265,720

Contribution

371,280

Full-Time Employee Costs

$42,000

84,000

Casual Employee Costs

$18.93

70,874

On-Costs

30%

46,462

Total Employee Costs

201,336

Store Costs (outgoings)

$1,600

19,200

Occupancy Cost (rent)

$3,500

42,000

Total Operating Costs

262,536

EBITDA

17%

108,744

Interest

150,000

6.00%

9,000

Depreciation

300,000

10.00%

30,000

Total Fixed Costs

301,536

Pre-Tax Profit

69,744

Tax

30%

20,923

Net Income

48,821

Based on your income statement for the Top Juice franchise, in the first year of operation, estimate the free cash flow which the franchise will generate in that year.

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