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XYZ Supermarket Chain is planning an expansion: Category Amount ($) Capital Expenditures - Expansion Costs $20,000,000 SG&A Expenses - Operational Costs $5,000,000 - Administrative Costs

XYZ Supermarket Chain is planning an expansion:

Category

Amount ($)

Capital Expenditures


- Expansion Costs

$20,000,000

SG&A Expenses


- Operational Costs

$5,000,000

- Administrative Costs

$1,000,000

Requirements:

  • Calculate the total Capital Expenditures for the expansion.
  • Determine the Return on Investment (ROI).
  • Recommend strategies to reduce SG&A costs by 8%.
  • Analyze the impact of reduced SG&A costs on store profitability.

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