Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pellen Parties provides complete party setups for private parties. Initially, the company invested $120,000 for party equipment, e.g., tents, tables, chairs, etc. Pellen's College Division
Pellen Parties provides complete party setups for private parties. Initially, the company invested $120,000 for party equipment, e.g., tents, tables, chairs, etc. Pellen's College Division generated $300,000 in revenue from off-campus student parties. After paying labor, food and beverages for each party, Pellen's income was $75,000. The company would like to expand its business by opening a Kids Division (ages 3-10). Projections for the Kid Division are: Sales = $100,000, and income = $45,000. Compute the maximum investment Pellen will make in the Kids Division to earn the same ROI as the College Division. 0 $45,000 0 $64,800 0 $72,000 0 $86,400 0 None of the other answers are correct
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started