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please answer question 3 and 5 franchise Profile: Original Sales and Cost Dat CATEGORY AMOUNT SALES $2,700,000 COSTS Food Costs $810,000 Paper Costs $108,000 Crew
please answer question 3 and 5
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 3 Operating Supplies $27,000 - Maintenance and Repairs $40,500 5 Utilities 581,000 B Training and Travel $16,200 7 Cooking Oil Waste Removal $5.400 8 Rent and Fees $391,500 9 Legal and Accounting 58.100 0 Insurance $54.000 1 Taxes and Licenses $27,000 2 Depreciation $94.500 33 Interest Expense $27,000 24 TOTAL COSTS $2.546.100 85 OPERATING PROFIT $153.900 RA 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) % al Enter your budget figures below Sales dollars Variable Costs Contribution Margin CM Fixed Costs Net Profit 2) Calculate the Break-Even Point in $ al Use the formula: BEP $ = (Fixed $/CM) Break-Even Point 3) Calculate the Margin of Safety (MOS) + a) Use the formula: Sales - BEP Sales = MOS $ 5 Margin of Safety $ b) Briefly describe the meaning of Margin of Safety in the space below 7 33 9 0 4) Calculate the Break-Even Point in $, assuming a profit target of $250,000 51 al Use the formula BEP $ = [(Fixed $ +Profit Target)/CM)] 32 Break-Even Point 33 2 4) Calculate the Break-Even Point in $, assuming a profit target of $250,000 a) Use the formula: BEP S = [(Fixed $ + Profit Target) CM%)] Break-Even Point 5) Calculate the Break-Even Point in $, 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 5 3 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 1 2 -3 54 25 46 a) Strenght - What advantages do they have over their competition? 47 1 48 2 49 b) Weakness - What disadvantages do they have compared to their competition? 501 51 2 52 c) Opportunities - What conditions exist today that they can take advantage to improve? 531 542 55 d) Threats - What conditions exist today that could result in hinder their success? 56 1 Step by Step Solution
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