Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its
franchisees standards of operation and personnel...
Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its
franchisees standards of operation and personnel training methods.
What is the potential pitfall to Mucho Tacos if it exercises too
much control over its franchisees?
Caffeine Coffee Shops, Inc., sells franchises. Caffeine imposes
on its franchisees standards of operation and personnel training
methods. What is the potential pitfall to Caffeine if it exercises
too much control over its franchisees?
Please explain in detail.
Shamrock Burrito Inc. sells franchises to independent operators
throughout the northwestern part of the United States. The contract
with the franchisee includes the following provisions.
1.
The franchisee is charged an
initial fee of $120,000. Of this amount, $20,000 is payable when
the agreement is signed, and a $100,000 zero-interest-bearing note
is payable with a $20,000 payment at the end of each of the 5
subsequent years. The present value of an ordinary annuity of five
annual receipts of $20,000,...
The Subway Sandwich Shop, Inc. is seeking to sell new franchises
for its business. The company is in the process of developing a
business plan to present to potential investors. Following are
various projected cost data for a typical sandwich shop:
Lease of store space
$500/month
Equipment lease
$500/month
License
$240/year
Advertising
2.5% gross sales revenue
Royalty
8% of gross sales revenue
Salaries
$2,000/month
Utilities
$400/month
Insurance
$1,500/year
The average order (sandwich) sells for $4, with food cost of
$2....
Bronco, Inc., imposes a payback cutoff of three years for its
international investment projects.
Year
Cash Flow (A)
Cash Flow (B)
0
–$
54,000
–$
64,000
1
20,000
12,000
2
22,000
15,000
3
18,000
20,000
4
5,000
224,000
What is the payback period for both projects? (Round
your answers to 2 decimal places, e.g., 32.16.)
Stenson, Inc.,
imposes a payback cutoff of three years for its international
investment projects. Assume the company has the following two
projects available.
Year
Cash Flow A
Cash Flow B
0
–$
47,000
–$
92,000
1
18,000
20,000
2
24,200
25,000
3
20,000
34,000
4
6,000
248,000
What is the payback
period for each project (A and B in years)?
. The Company is considering a change in its credit standards.
The company sells currently 10 000 units of Technotron. The sales
price is 40€. The variable cost is 60% of the sales price. The
relaxation of credit standards should result in 15% sales increase.
However, the average credit collection period increases to 80 days
from current 30 days. It is also expected that bad debt loss would
also increase from 2% to 5% of the sales. The company finances...
Buy Coastal, Inc., imposes a payback cutoff of 3 years for its
international investment projects. Suppose the company has the
following two projects available. Project A has payback period of
years, while project B has a payback period of years. Therefore, it
should project A and project B. (Round your answers to 3 decimal
places. (e.g., 32.162))
Year Cash Flow (A) Cash Flow (B)
0 −$43,000 −$59,000
1 21,000 10,000
2 31,000 16,000
3 10,000 26,000
4 2,000 268,000 References
Global Toys, Inc., imposes a payback cutoff of three years for
its international investment projects. Assume the company has the
following two projects available.
Year
Cash Flow A
Cash Flow B
0
–$
64,000
–$
109,000
1
26,500
28,500
2
34,400
33,500
3
28,500
25,500
4
14,500
231,000
Requirement 1:
What is the payback period for each project?
(Do not round intermediate
calculations. Round your answers to 2 decimal
places (e.g., 32.16).)
Payback period
Project A
years
Project B...
Wine Glass Inc. produces and sells
wine glasses.
Per the Standards, for the months of
May, each wine glass takes 2 pounds of material at $2.50 per
pound.
For the Month of May, Wine Glass Inc.
planned on producing and selling 200 wine glasses. They actually
produced and sold 210 wine glasses, using 525 pounds of material
costing $1,181.25 in actual total cost.
What is the Materials Activity Variance for the Month of
May:
What is the Materials Spending Variance...
AB Distribution, Inc., employed QY, Inc., to run its tire
mounting and distribution operation in Mount Valley, Ohio. Robert
Chase worked for QY as a second-shift supervisor at Titan. He
suffered a heart attack in 2000 and underwent heart bypass surgery
in 2001. He also had arthritis. In July 2006, AB Distribution
decided to terminate QY. Chase applied to work at AB Distribution,
Inc. On his application, he described himself as having a
disability. After a physical exam, AB’s doctor...