ROI = net profit x100/investment

Net profit = 0.2x300000 = 60000 per annum

Required profits per week = 60000/52 = 1153.84

Assume that the cost structure include follwing costs

Material cost = 1.87 per serve

Direct labour = 2 workers @ $15 per hour x8 hours x 5days = 1200

Overhead costs ( rent, insurance, machine depreciation etc.)= 1000 per week

Tax rate = 30% ( assumed)

Selling price = $5 per serve

Income from sales = 5n ( n is the number of servings sold per week)

0.7 x(5n - nx1.87 - 1000-1200) = 1153.84

3.13n -2200 = 1648.34

n= 1229.5 =1230

Hence, the company will have to sell 1230 serves per week at price of $5 to earn the said profit.

Based on your teams analysis as presented in your Group Presentation and as you have personally revised in light of the feedback you received on that presentation, re-present the income statement for the first year for the Top Juice franchise. Assume that in the first year of operation, the store is estimated to sell around 1,750 Berry Bangs per week, at an average price of $7.00. Calculate the revenue and deduct the cost of sales, royalty, marketing contribution, employee costs (including the on-costs), occupancy costs and property outgoings to calculate EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation). Deduct interest expense and depreciation as estimated above to estimate profit before tax. Estimate tax assuming a 30% tax rate. Estimate net income after deducting tax.