Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Revenues were $1 million with net profit of $50,000 last year when the first mega Petal Providers floral outlet was opened. If the economy grows
Revenues were $1 million with net profit of $50,000 last year when the first "mega" Petal Providers floral outlet was opened. If the economy grows rapidly next year, the company expects growth by 60 percent. with average growth, the company expects 25 percent. with slow growth a 10 percent rate. The entrepreneur expects the following probabilities rapid growth (25); average growth (60), and slow growth (15). Also If slow grow occurs, the net profit margin will be 5 percent, 7 percent for average growth and 10 percent for rapid growth.
A. Estimate the average sales growth rate for Petal Providers for next year.
B.Estimate the dollar amount of sales expected next year under each scenario, as well as the expected value sales amount.
C. Estimate the dollar amount of net profit expected next year under each scenario, as well as the expected value net profit amount.
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