Victor begins his analysis focusing on this year's sales. Which of the three locations is underperforming based on this year's performance?

(Click to select) The Uptown location The Uptown and Suburban locations and underperforming equally. The Downtown location The Downtown and Uptown locations are underperforming equally. The Suburban location

2. Victor looks closely at the results for the Uptown location but is perplexed by the difference between the location's sales and profit performance. How would you explain the Uptown location's results?

(Click to select) The Uptown location generates the most sales and profits of all locations. The Uptown location generates the least sales and profits of all locations. While the Uptown location generates the most profits, its sales lag due to its small location. While the Uptown location generates the most sales, its profit lags behind due to its relatively high expenses. The Uptown location has declining sales and profits.

3. Victor knows that trends in data can provide valuable insights. Based on the last three years' data, what conclusions should Victor draw?

(Click to select) The Suburban location's rate of sales is increasing, but at a slowing pace. The Downtown location's rate of sales decline is increasing. The Suburban location's rate of sales decline is decreasing. The Uptown location's rate of sales growth is increasing. The Downtown location's rate of sales growth is increasing.

4. The building management company in the Uptown location shares good news with Victor: The cost of his restaurant space is decreasing to $275,000 per year. What effect will this change have on the locations sales and profits?

(Click to select) Neither sales nor profit will be affected by a change in rent. Sales will increase to $1,450,000 while profits remain constant. Sales will increase by $25,000 but profits will be unaffected. Sales and profits will both increase by $25,000. Sales will be unaffected, but the Uptown location's profits will increase to $73,000.

5. Start with the initial values for the location's sales, expenses, and profits. Victor feels that he could increase his sales by 5 percent in the Downtown location by spending $50,000 in direct response marketing. Do you recommend that he pursue this strategy?

(Click to select) No, because the $50,000 marketing expense does not result in an increase in sales. No, because the $50,000 marketing expense does not result in a large enough sales increase to offset the additional expense. Yes, because the $50,000 marketing expense increase the location's profitability. Yes, because the $50,000 marketing expense increases the profit margin. Yes, because the $50,000 marketing expense increases sales.

entering the initial values into columns B to D Then review the questions below and adjust the values in columns the correct answers. to D to determine Uptown location owntown Suburban location Initial value in Uptown location location 2 $ $ $ $ $ Annual sales Total expenses (less rent) Rent Profit Profit margin Square footage Sales per square foot 1,200,000 852.000 300,000 48,000 Value: Inhal Value Suburban location 750,000 $ 875.000 521 250 585 250 205,000 $ 225.000 23.750 63.750 4 5 $ 5 6 7 8 2,500 2.000 3.000 2500 5 2,500 480 18.000 67 2.000 375 15,500 48 9 Guests 19.500 Revenue per guest $ S $ 12 Location % of sales Infinity 13 Location % of profit Infinity Infinity 15 Last year's sales 5 $ $ 1.170,000 1,100,000 $ S 925.000 975.000 5 760.000 705.000 5 9516675 926,6675 2.855,000 2.780 000 5 $ 1,170,000 $ 1,100,000 S 925.000 975.000 760.000 705.000 16 Two year's ago sales 3% -199 Same store sales growth (this year to last year) -5% -5% Same store sales growth (last year two year's ago) entering the initial values into columns B to D Then review the questions below and adjust the values in columns the correct answers. to D to determine Uptown location owntown Suburban location Initial value in Uptown location location 2 $ $ $ $ $ Annual sales Total expenses (less rent) Rent Profit Profit margin Square footage Sales per square foot 1,200,000 852.000 300,000 48,000 Value: Inhal Value Suburban location 750,000 $ 875.000 521 250 585 250 205,000 $ 225.000 23.750 63.750 4 5 $ 5 6 7 8 2,500 2.000 3.000 2500 5 2,500 480 18.000 67 2.000 375 15,500 48 9 Guests 19.500 Revenue per guest $ S $ 12 Location % of sales Infinity 13 Location % of profit Infinity Infinity 15 Last year's sales 5 $ $ 1.170,000 1,100,000 $ S 925.000 975.000 5 760.000 705.000 5 9516675 926,6675 2.855,000 2.780 000 5 $ 1,170,000 $ 1,100,000 S 925.000 975.000 760.000 705.000 16 Two year's ago sales 3% -199 Same store sales growth (this year to last year) -5% -5% Same store sales growth (last year two year's ago)