Question
I want to know how to solve this question. 1.Based only on the information provided, calculate the market share in order to find the projected
I want to know how to solve this question.
1.Based only on the information provided, calculate the market share in order to find theprojected incomefor each of the three options to better analyze the three options available to Kelly:
Projected income for the mall location option is $____________
2.Based only on the information provided, calculate the market share in order to find theprojected incomefor each of the three options to better analyze the three options available to Kelly:
Projected income for the existing downtown restaurant option is $_______________
3.Based only on the information provided, calculate the market share in order to find theprojected incomefor each of the three options to better analyze the three options available to Kelly:
Projected income for the franchise option is $_______________
Kelly Orr works as assistant department manager in the ladies' wear department of a large department store in Kingston, Ontario. She enjoys her work but sees that chances of further advancement in her $35,000-a-year job are limited. For the past few years, Kelly has been thinking about starting her own business. As a teenager, she worked summers in a fast-food franchise and always wanted to own a restaurant. As she has two children, she resents having to work Thursday and Friday evenings and Saturdays, and she thinks that by owning her own business she can more easily take time off to be with her family. Her husband, a schoolteacher, has supported her working in the past but is a bit hesitant about Kelly risking her savings of $20,000 to go out on her own. They agree, however, that Kelly should investigate a few possibilities and obtain as much information as she can about the restaurant industry in Kingston.
For the past six months, Kelly has visited with several of her friends, looked at some prospective businesses, and checked with public officials to find out what information is available. She has obtained the following information:
Population of Kingston95,000
Per-family away-from-home food expenditures $80/month
Number of families in Kingston28,000
Number of restaurants in Kingston110
Average square footage per outlet1,500
Cost of goods sold as percentage of gross sales50%
Bank's lending rate10%
Operating expenses, excluding rent, interest, and franchise advertising royalties, are estimated to be 35 percent of gross sales.
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