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Problem One Yummy's is a restaurant chain operating in select cities in the Carolinas. Select financial data is presented below to provide you with the

Problem One
Yummy's is a restaurant chain operating in select cities in the Carolinas. Select financial data is presented
below to provide you with the necessary content for perfromance evaluation purposes.
Charlotte Greenville Columbia
Restaurant Restaurant Restaurant Total
Sales revenue 3,185,000 1,400,000 1,200,000 5,785,000
Variable costs 995,000 375,000 310,000 1,680,000
Fixed costs 1,680,000 725,000 650,000 3,055,000
Operating income 510,000 300,000 240,000 1,050,000
Interest costs on long-term debt at 10% 450,000
Income before income taxes 600,000
Income taxes at 30% 180,000
Net income 420,000
Net book values at the end of 2016:
Current assets 660,000 500,000 400,000 1,560,000
Long-term assets 2,340,000 1,500,000 600,000 4,440,000
Total assets 3,000,000 2,000,000 1,000,000 6,000,000
Current liabilities 300,000 150,000 50,000 500,000
Long-term debt 4,500,000
Stockholders' equity 1,000,000
Total liabilities and stockholders' equity 6,000,000
Requirement Three:
Calculate ROI for each of the three again, but
assume sales increase by 10% for each one.
Assets and fixed costs remain the same as presented.

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