Cost Of Equipment For Mcdonald's Corporation

1300 Words6 Pages
The rent is considered as $12,000 per unit per month after evaluating the existing lease of the company. McDonald’s operations will be on the campus of the university, so the major approvals will be a mutual understanding under the contract between the university and McDonald’s. Cost of equipment is not considered since company can use the existing equipment collected from the 722 closed restaurants in 2015 (McDonald 's Corporation, 2016), however the transportation and installation cost is included in the infrastructure cost. Employee’s salary is considered on average basis of company’s pay scale of each position (McDonald 's Corporation, 2016). It is assumed that initially the restaurant will be working for 16 hours a day and 25 days a month as shown in calculation above. For the initial year it is considered that average sales per day will be 1500 and for the second year will increase to 1650, which is considered by the growth of the universities and students enrolled. COGS is 1/3rd of the cost of sales and sales is based upon an average consumer spending in a restaurant (McDonald 's Corporation, 2015). Income is also generated from the fees received from the college and universities for the services which is calculated on average of $240,000 annually, however the fees income will vary with every college depending on the contract. 1% commission on sales to universities is consider as expenditure for the company. McDonald’s current financial requirement is approx. $42.14
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