Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler’s continuing poor performance, CFG is deciding whether or not to close the Sizzler restaurants and re-invest into KFC to continue its growth. CFG’s every three months revenues are $450,151 while Sizzler remains open, and they estimate revenues will increase to $501,738 every three months if the divestment of Sizzler goes ahead. Running costs will remain constant at $91,674 every three months in either case. The cost of the divestment of sizzler would be $95,901 over the time frame of one year.
What will be CFG’s estimated accounting profits for the first three months after the divestment goes ahead? Answer number to the nearest whole number and include a negative sign if it is an accounting loss (with no decimal places, $ sign, spaces or commas).
Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler’s continuing poor...
Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler’s continuing poor performance, CFG is deciding whether or not to close the Sizzler restaurants and re-invest into KFC to continue its growth. CFG’s quarterly revenues are $409,990 while Sizzler remains open, and they estimate revenues will increase to $493,082 every three months if the divestment of Sizzler goes ahead. Running costs will remain constant at $87,186 every three months in either case. The cost of the...
QUESTION 4 Collins Food Group (CFG) owns both Sizzler and KFC in Australia. Due to Sizzler's continuing poor performance, CFG is deciding whether or not to close the Sizzler restaurants and re-invest into KFC to continue its growth. CFG's every three months revenues are $458,228 while Sizzler remains open, and they estimate revenues will increase to $513,139 every three months if the divestment of Sizzler goes ahead. Running costs will remain the divestment of sizzler would be $97,567 over the...
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CASE:
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