Please answer my assignment 3 thx
Your team's assignment machine a not For invest in the n labeling the e company decided to recommendations, pursue the national fast chain since receiving your Heaven Pizza company has been conducting strategic planning discussions on the future of and is considering two major acquisitions. Option 1 selling pizzas as a Purchase Pete's Steakhouse. Up to now, Heaven Pizzas has focused on wholesaler to restaurants and grocery store chains in southern China. Tom and Jerry were approached by the chain's management group about whether they would be interested in buying their five underperforming restaurants and operate them under the "T&J'sSteakhouse" name. Pete's Steakhouse is known for itsexcellent steak dinners and service but has struggled to expand to compete with the many dining options available to consumers in its menu Southern China. The key idea with this acquisition is that adding Heaven Pizzas outstanding dessert offerings would make the new restaurant an appealing destination for both dinner and dessert. To help prepare for the upcoming initial negotiations, Tom and Jerry have asked you to review the 2015 performance report for the chain (see Table 2). It is estimated that average price per meal would increase 12% with the new desserts and require an investment of $10 million option 2 The second option to purchase and operate a factory in Shanghai which would double is Heaven Pizzas' current production volume. There is an existing food production facility in Shanghai in a location that is well positioned on distribution routes and provides proximity to a whole new market of restaurants and grocery chains. The asking price for the facto iss7.5 million and includes existing equipment. About half the machinery could be used by Heaven Pizzas, but would also require an investment of $2.5 million in additional equip with a 10-year average to provide same capacity as the current factory. It would take about life the ix months to get the new plant up and running. Estimated sales for the first three years after it opens are $4 million, $6 million and $10 million, respectively. Variable expenses are expected to have about the same behavior and relationship to sales as the current facility. Fixed expenses would be about the same amount per month as the current factory. Your team's assignment machine a not For invest in the n labeling the e company decided to recommendations, pursue the national fast chain since receiving your Heaven Pizza company has been conducting strategic planning discussions on the future of and is considering two major acquisitions. Option 1 selling pizzas as a Purchase Pete's Steakhouse. Up to now, Heaven Pizzas has focused on wholesaler to restaurants and grocery store chains in southern China. Tom and Jerry were approached by the chain's management group about whether they would be interested in buying their five underperforming restaurants and operate them under the "T&J'sSteakhouse" name. Pete's Steakhouse is known for itsexcellent steak dinners and service but has struggled to expand to compete with the many dining options available to consumers in its menu Southern China. The key idea with this acquisition is that adding Heaven Pizzas outstanding dessert offerings would make the new restaurant an appealing destination for both dinner and dessert. To help prepare for the upcoming initial negotiations, Tom and Jerry have asked you to review the 2015 performance report for the chain (see Table 2). It is estimated that average price per meal would increase 12% with the new desserts and require an investment of $10 million option 2 The second option to purchase and operate a factory in Shanghai which would double is Heaven Pizzas' current production volume. There is an existing food production facility in Shanghai in a location that is well positioned on distribution routes and provides proximity to a whole new market of restaurants and grocery chains. The asking price for the facto iss7.5 million and includes existing equipment. About half the machinery could be used by Heaven Pizzas, but would also require an investment of $2.5 million in additional equip with a 10-year average to provide same capacity as the current factory. It would take about life the ix months to get the new plant up and running. Estimated sales for the first three years after it opens are $4 million, $6 million and $10 million, respectively. Variable expenses are expected to have about the same behavior and relationship to sales as the current facility. Fixed expenses would be about the same amount per month as the current factory
