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Yalla Momos: Expansion Dilemmas of a Small Business
Answer the following questions. Organize financial analysis in supporting appendices. Summarize your descriptive and concluding comments in the main body of the report.
1. What are the main issues faced by Yalla Momos?
2. Evaluate and describe the current financial performance of Yalla Momos.
3. What are the relevant factors to be considered in the decision to expand? Why are these factors relevant? How will these factors influence decisions?
4. How can companies like Yalla Momos benefit from CVP analysis? What impact would expansion have on the business? Compare and contrast the before and after expansion estimates. Prepare numerical analysis and describe the advantages and disadvantages of expansion.
5. How realistic are the owners' assumptions? Support your conclusions.
6. What course of action should the owners of Yalla Momos take? Why?
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