Franchise Profile: Original Sales and Cost Dat CATEGORY AMOUNT SALES $2,700,000 COSTS Food Costs $810,000 Paper Costs $108,000 Crew Payroll $540,000 Crew Payroll Taxes $54,000 Manager Payroll and Payroll Taxes $108,000 Advertising $108,000 Promotions $13,500 Outside Services - Landscaping $27,000 Linens $5,400 Operating Supplies $27,000 Maintenance and Repairs $40,500 Utilities $81,000 Training and Travel $16,200 Cooking Oil Waste Removal $5,400 Rent and Fees $391,500 Legal and Accounting $8,100 Insurance $54,000 Taxes and Licenses $27,000 Depreciation $94,500 3. Interest Expense $27,000 TOTAL COSTS $2,546,100 5 OPERATING PROFIT $153.900 REQUIRED 1. Identity ench cost from the Franchise Profile as a variable or fixed cost and place in appropriate row on the Original Budget 2. Complete the calculations on the Original Budget. Note: The Operating Budeat should equal $153.900, 3. Prepare a Flexible Budget for Scenario 1. Assume Sales and Variable costs increase by 10% and the Advertising Budget was incresed by $10,000 4. Prepare a Flexible Budget for Scenario 1. Assume Sales and Variable Cost decrease by 20% REQUIRED: 1. Obtain the data from Original Budget you created on Worksheet 1. 2. Complete the four calulations below using the Orginal Budget data. 3. Complete a Strenghts/Weaknesses/Opportunities/Threats (SWOT) Analysis. 1) Calculate the Contribution Margin (CM) % a) Enter your budget figures below Sales dollars Variable Costs Contribution Margin CM% Fixed Costs Net Profit 2) Calculate the Break-Even Point in $ a) Use the formula: BEP $ = (Fixed $/CMX) Break-Even Point 3) Calculate the Margin of Safety (MOS) al Use the formula: Sales - BEP Sales = MOS $ Margin of Safety $ b) Briefly describe the meaning of Margin of Safety in the space below 4) Calculate the Break-Even Point in S, assuming a profit target of $250,000 al Use the formula: BEP $ = [[Fixed $ +ProfitTarget) /CM%)] Break-Even Point H 5) Calculate the Break-Even Point in S, assuming an Afte-tax profit target of $200,000 and a 30% tax rate: a) Use the formula: BEP $ = [(Fixed $ +Profit Target)/CMX)] Break-Even Point SWOT Analysis: Describe 2 examples for each category of a SWOT Anaysis for McDonald's Franchises. Describe the location, environment and competition of the McDonald's you will analyze a) Strenght - What advantages do they have over their competition? 1 2 b) Weakness - What disadvantages do they have compared to their competition? 1 12 c) Opportunities - What conditions exist today that they can take advantage to improve? 1 2 d) Threats - What conditions exist today that could result in hinder their success? 1 2