Adli Yunus is the vice president of development for Eddlee Fried Chicken a rapidly expanding chain of restaurants featuring takeout fried chicken and other Malay food specialties. Currently, the chain has 150 units and the average unit volume is$800,000 per year. Annual per-unit revenue growth for opened units is 5 percent per year. Baba Tomi, the chain's president, has promised company stakeholders the chain will experience 12 percent overall revenue growth in the next year. Assuming that per-unit growth on existing units continues to average 5 percent, calculate the total revenue next year.
Adli Yunus is the vice president of development for Eddlee Fried Chicken a rapidly expanding chain of restaurants featuring takeout fried chicken and other Malay food specialties. Currently, the chain has 150 units and the average unit volume is$800,000 per year. Annual per-unit revenue growth for opened units is 5 percent per year. Baba Tomi, the chain's president, has promised company stakeholders the chain will experience 12 percent overall revenue growth in the next year. Assuming that per-unit growth on existing units continues to average 5 percent, calculate the total revenue next year.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 22P
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Adli Yunus is the vice president of development for Eddlee Fried Chicken a rapidly expanding chain of restaurants featuring takeout fried chicken and other Malay food specialties. Currently, the chain has 150 units and the average unit volume is$800,000 per year. Annual per-unit revenue growth for opened units is 5 percent per year. Baba Tomi, the chain's president, has promised company stakeholders the chain will experience 12 percent overall revenue growth in the next year. Assuming that per-unit growth on existing units continues to average 5 percent, calculate the total revenue next year.
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