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I just want to know Projected income for the downtown option is $

Note, the answer is no 94925.37 pleas help

I want downtown restaurant option only Q9 possibility B

( projected income for the exisiting downtown restaurant option is $ ..........

2. Based only on the information provided, calculate the market share in order to find the projected income for each of the three options to better analyze the three options available to Kelly Projected income for the existing downtown restaurant option is $ KELLY'S GRILL Kelly Orr works as assistant department manager in the ladies' wear department of a large department store in Kingston, Ontario, She enjoys her work but sees that chances of further advancement in her $45,000-3-year job are limited. For the past few years, Kelly has been thinking about starting her own business. As a teenager, she worked summers in a fast-food franchise and always wanted to own a restaurant. As she has two children, she resents having to work Thursday and Friday evenings and Saturdays, and she thinks that by owning her own business she can more easily take time off to be with her family. Her husband, a schoolteacher, has supported her working in the past but is a bit hesitant about Kelly risking her savings of $20,000 to go out on her own. They agree, however, that Kelly should investigate a few possibilities and obtain as much information as she can about the restaurant industry in Kingston For the past six months, Kelly has visited with several of her friends, looked at some prospective businesses, and checked with public officials to find out what information is available. She has obtained the following information: 95,000 $190/month 28.000 Population of Kingston Per family away from home food expenditures Number of families in Kingston Number of restaurants in Kingston Average square footage per outlet Cost of goods sold as percentage of gross sales Bank's lending rate 110 1,500 50% 10% Operating expenses, excluding rent, interest, and franchise advertising royalties, are estimated to be 35 percent of gross sales From several restaurant possibilities, Kelly has narrowed the decision down to three a site in a shopping mall, a downtown restaurant that is for sale, and a fast-food franchise All three involve a greater investment than Kelly was planning on. To get sufficient funds, the Orrs may have to remortgage their house, Possibility B The second potential site is a 2500-square-foot busy downtown lunchtime cafe that is for sale. The present owner is asking $150,000 for the restaurant and is willing to finance the sale at $50,000 down and $10,000 per year for 15 years. The space has been leased at $35,000 annually and is due to be renegotiated in three years. The location of this restaurant makes it attractive to lunchtime and late-afternoon customers. The restaurant has operated successfully for six years and is located close to several large office buildings. . . Projected income for the downtown option is $ [2] Market potential (always annual) = Families x food expenditure per month x 12 Total market sq. ft. = Number of restaurant outlets x average sq. ft. per outlet Market share = Proposed sq. ft/ (total market sq. ft. + proposed sq. ft.) x total market potential . . Note: do not round market share calculations internally Continued... Projected income for the downtown option is $ [2] Consider the following data: Estimated gross sales = Calculated in previous (market share) Cost of goods sold = 50% of gross sales Gross profit = remaining 50% of gross sales Operating expenses = 35% of gross sales Rent (annual) = current annual lease value Interest on loan = (sale price - owners equity) x 10% Projected income = Gross profit - operating expenses - rent - interest on loan . . Note: She doesn't take the financing option since it is more expensive and simply takes a loan for the remaining funds Note: answer as a whole number, no decimals QUESTION #8, 9, 10 2. Based only on the information provided, calculate the market share in order to find the projected income for each of the three options to better analyze the three options available to Kelly: Projected income for the mall location option is $ [1] Projected income for the existing downtown restaurant option is $ [2] N Projected income for the franchise option is $ [3] KELLY'S GRILL Kelly Orr works as assistant department manager in the ladies' wear department of a large department store in Kingston, Ontario. She enjoys her work but sees that chances of further advancement in her $45,000-3-year job are limited. For the past few years, Kelly has been thinking about starting her own business. As a teenager, she worked summers in a fast-food franchise and always wanted to own a restaurant. As she has two children, she resents having to work Thursday and Friday evenings and Saturdays, and she thinks that by owning her own business she can more easily take time off to be with her family. Her husband, a schoolteacher, has supported her working in the past but is a bit hesitant about Kelly risking her savings of $20,000 to go out on her own, They agree, however, that Kelly should investigate a few possibilities and obtain as much information as she can about the restaurant industry in Kingston For the past six months, Kelly has visited with several of her friends, looked at some prospective businesses, and checked with public officials to find out what information is available. She has obtained the following information: Population of Kingston Per-family away from home food expenditures Number of families in Kingston Number of restaurants in Kingston Average square footage per outlet Cost of goods sold as percentage of gross sales Bank's lending rate 95,000 $190/month 28,000 110 1.500 50% 10% Operating expenses, excluding rent, interest, and franchise advertising royalties, are estimated to be 35 percent of gross sales From several restaurant possibilities, Kelly has narrowed the decision down to three: a site in a shopping mall, a downtown restaurant that is for sale, and a fast-food franchise. All three involve a greater investment than Kelly was planning on. To get sufficient funds, the Orrs may have to remortgage their house. Possibility A The first potential site is a shopping centre that is currently under renovation. The centre is anchored at each end by two national department stores, Kelly is a bit concerned about the long-term viability of one of the stores given the poor financial results the company has been reporting for the past two years. The space Kelly is considering is 6,000 square feet and carries a rental of $20 per square foot, plus a royalty of 2 percent of gross sales. Although the rental costs would be high, Kelly is confident that the mall, once fully renovated, will generate considerable customer traffic, thus outweighing the rental costs. Also, the mall location is within a few minutes' drive from her home. However, the space is unfinished, and Kelly estimates she would need a minimum of $70,000 in equipment and $20,000 in leasehold improvements to get the restaurant started. As it stands now, the mall has a food court with nine operators and she would have the only sit-down restaurant. Possibility B The second potential site is a 2500-square-foot busy downtown lunchtime cafe that is for sale. The present owner is asking $150,000 for the restaurant and is willing to finance the sale at $50,000 down and $10,000 per year for 15 years. The space has been leased at $35,000 annually and is due to be renegotiated in three years. The location of this restaurant makes it attractive to lunchtime and late afternoon customers. The restaurant has operated successfully for six years and is located close to several large office buildings. Possibility C The third possibility is to sign a franchise contract with a national fast-food chain that wants to expand into Kingston The typical outlet size is 2000 square feet. The initial franchise fee is $20,000, plus an additional $150,000 to be financed through Kelly's bank with the franchise guarantee, which would lower the interest rate by 2 percent. Kelly would also pay 6 percent of gross sales as a royalty, They would train Kelly in one of its company-owned outlets at no charge and help with the start-up of her own outlet. She would, of course, be constantly monitored by the franchise-a point that makes her a bit uneasy. Kelly needs to make a decision soon. All three prospects might be lost if she waits too long, -- QUESTION #9 . . Projected income for the downtown option is $_ [2] Market potential (always annual) = Families x food expenditure per month x 12 Total market sq. ft. = Number of restaurant outlets x average sq. ft. per outlet Market share = Proposed sq. ft/ (total market sq. ft. + proposed sq. ft.).x total market potential . . Note: do not round market share calculations internally Continued... QUESTION #9 . Projected income for the downtown option is $ [2] Consider the following data: Estimated gross sales = Calculated in previous (market share) Cost of goods sold = 50% of gross sales Gross profit = remaining 50% of gross sales Operating expenses 35% of gross sales Rent (annual) = current annual lease value Interest on loan = (sale price - owners equity) x 10% Projected income = Gross profit - operating expenses - rent - interest on loan . Note: She doesn't take the financing option since it is more expensive and simply takes a loan for the remaining funds Note: answer as a whole number, no decimals

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