Estimate the impact of ebitda of expansion

Reference no: EM133430458

Question: Rejuvine is a franchise that is considering an expansion of the number of both its corporate-owned and franchised outlets. Estimate the impact of EBITDA of expansion given the following details: - Increase in number of corporate-owned outlets is 9 - Sales per corporate-owned outlet is $4 million - EBITDA as a percentage of sales at store level is 24% - Increase in number of franchised outlets is 10 - Sales per franchised outlet is $3 million - Franchise royalty paid to franchisor is 7% of sales at the franchise level - A marketing fee paid by the franchisees is offset exactly by costs incurred by the franchisor.

Reference no: EM133430458

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