Question
McBain Tower In this scenario, the business would exercise the option of breaking its current lease for a penalty of $300,000. It would then relocate
McBain Tower
In this scenario, the business would exercise the option of breaking its current lease for a penalty of $300,000. It would then relocate to a five-story space within McBain Tower. Since most of the space is already designed well for training, All-Star could make quick tweaks at an estimated cost of $150,000 and get things rolling very quickly. The lease would be a bit costlier- $300,000 a month, and the business would now need to incur added expenses of $50,000 a month for utilities. Don wants your help with projecting the other expenses.
On the bright side, the business would now have sixteen rooms to work with (average size of 25 seats each). Shelly admittedly hasn't done much number crunching but believes she can boost enrollment by 25% if the marketing budget is increased by $300,000 to advertise the new larger location. Without the larger budget, she estimates that customer numbers would grow by 15% next year..
I. Analyze quantitatively and qualitatively.
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