Ron MacGruder is senior vice president of acquisitions for Yunny Foods. Yummy is a large multinational food service company. It owns over 2.000 restaurants 3 Among its famous brands are a chain of pizza parlors, a Mexican carryout group, a chain of fried chicken stores, and a large group of fried fish stores. Ron is constantly on the lookout for growing food service concepts that could be purchased at a fair price and added to the Yummy group. One such concept that is currently 4 available for sale is a small but expanding group of upscale Thas restaurants caled Bow Thais. The current owners wish to sell the 17.unit chain and retire to Florida 5 They proudly point to the fact that both their sales and profits have increased in each of the last three years. Revenue as more than doubled this year compared to two years ago Prolits have rise from just $600,000 two years ago to over $1,000,000 this year. In addition, the Bow Thais chain consisted of units two years ago 6. 12 units last year, and 17 units this year Develop a summary P&L for each of Bow Thais last three years showing revenue expenses, and profit Next computea er unit revenue, expense, roftand profit margin level for each of the three years for which you have data 7 10 Profit Margins No. of Units Revenue per Unit Expense per Unit Profit per Unit Expense 11 12 2 Years Ago 13 Last Year 14 This Year Revenue $6,500,000 39,900,000 $13,500,000 Profit $600,000 $800,000 $1.010,000 16 Based on your calculations, would you advise Ron to buy the company? Why or why not? 17