Reference no: EM133118902
Question - Restaurant - The case study details are provided in the document below 'Case Study - Restaurant'.
The following historical financial data relates to the years 2013 to 2015 for a restaurant that you & your 4 partners are considering purchasing. Each partner is as follows:
|
Peter 25%
|
John 15%
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Lucas 20%
|
Noel 10%
|
You ... %
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The purchase price will be $1,500,000.00
You are wondering whether the purchase will be viable & give you a required R.O.I. All financial data is GST exclusive & excel spreadsheets are to be used in the calculations. Please go to ABS website to see the currently consumer price index (CPI).
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Sales Units
|
|
Product
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2013
|
2014
|
2015
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Total
|
|
A
|
22800
|
24000
|
24480
|
71280
|
|
B
|
20900
|
22000
|
22440
|
65340
|
|
C
|
19000
|
20000
|
20400
|
59400
|
|
D
|
17100
|
18000
|
18360
|
53460
|
|
E
|
15200
|
16000
|
16320
|
47520
|
|
Total
|
95000
|
100000
|
102000
|
297000
|
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Average Selling Prices
|
|
A
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$10.30
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$10.90
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$12.50
|
|
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B
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$9.90
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$11.50
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$13.00
|
|
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C
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$15.00
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$15.90
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$17.00
|
|
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D
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$14.60
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$15.00
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$16.00
|
|
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E
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$14.70
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$15.30
|
$15.90
|
|
|
Average COGS%
|
|
A
|
22.14%
|
23.25%
|
24.11%
|
|
|
B
|
23.00%
|
19.50%
|
24.25%
|
|
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C
|
22.35%
|
24.25%
|
23.95%
|
|
|
D
|
19.55%
|
21.25%
|
24.55%
|
|
|
E
|
24.55%
|
26.00%
|
26.55%
|
|
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The following financial data relates to year ending 30/06/2015
|
|
Variable Expenses
|
|
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Wages
|
19.10%
|
|
Wages On-cost
|
3.19%
|
|
Total Wages
|
22.29%
|
|
Utilities
|
1.20%
|
|
Stationery
|
0.10%
|
|
Petty Cash
|
0.06%
|
|
Consumables
|
0.05%
|
|
Telephony
|
1.30%
|
|
Total Variable Expenses %
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25.00%
|
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Fixed Expenses
|
|
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Rent
|
$259,000.00
|
|
Insurances
|
$10,000.00
|
|
Depreciation
|
$5,000.00
|
|
Legal
|
$2,000.00
|
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Total Fixed Expenses
|
$276,000.00
|
The partners agreed on the purchase so the venture has gone ahead with the following results. In the first month of trading in the new venture July 2015 the following actual financial transactions occurred:
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Sales
|
|
|
A
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$28,356.00
|
|
B
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$31,256.00
|
|
C
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$28,000.00
|
|
D
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$31,000.00
|
|
E
|
$19,000.00
|
|
Total Sales
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$137,612.00
|
|
Variable Expenses
|
|
Wages
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$26,283.89
|
|
Wages On-cost
|
$4,389.82
|
|
Total Wages
|
$30,673.71
|
|
Utilities
|
$1,651.34
|
|
Stationery
|
$137.61
|
|
Petty Cash
|
$82.57
|
|
Consumables
|
$68.81
|
|
Telephony
|
$1,788.96
|
|
Total Variable Expenses
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$34,403.00
|
|
Fixed Expenses
|
|
Rent
|
$22,500.00
|
|
Insurances
|
$1,500.00
|
|
Depreciation
|
$400.00
|
|
Legal
|
$300.00
|
|
Total Fixed Expenses
|
$24,700.00
|
Required - Review the details provided and undertake the following:
1. Calculate the sales & COGS for each of the 5 products.
2. Calculate the breakeven points for total sales & each product in $'s & units.
3. Set a budget for the coming 12 months starting from 1/7/2015 ensuring that %'s are shown.
4. Determine the budgeted payback period.
5. Determine the R.O.I.
6. Compare the actuals to budget?