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Please kindly give a well-detailed analysis, preferably with an image/picture as a response instead of text. Thank you 4. Another option for AB PREMIUM is
Please kindly give a well-detailed analysis, preferably with an image/picture as a response instead of text. Thank you
4. Another option for AB PREMIUM is to expand to another city under its current operating model of only selling one kind of burger. In order to expand to another city, AB PREMIUM has decided that it will need to invest in an aggressive marketing campaign in the new city. The marketing campaign will cause another $425,000 in fixed marketing expenses to be incurred for the 1st quarter 2020. The company will also need to hire a new manager to run the new city's operations at a quarterly salary cost of $35,500. a. Based on this above information related to the possible expansion of the company, what is the impact to operating income as compared to the original Income Statement given on Page 1 ? b. What is the new breakeven in sales dollars? c. AB PREMIUM would like to ultimately have a total target profit of $1,000,000. How many burgers must it sell to meet this target profit? Note: Round burgers up to the whole burger. 5. Explain whether AB PREMIUM should expand to another city based on the calculations above. Also consider qualitative factors of expansion into a new cityStep by Step Solution
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