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Analyze the various operating expenses as percentages of gross profit for Jamba Juice in the last five years. Should Jamba Juice try to increase the price of its products? What operating expenses are hurting Jamba Juice the most? Suggest possible turnaround actions the company should take.JAMBA, INC. CONSOLIDATED BALANCE SHEETS December 29, 2016 7,099 55,997 December 29, 2015 8,990 64,625 December 30, 2011 9,544(Dollars in thousands, except share and per share amounts) December 29, 2016 December 29, 2015 December 30, 2014 Revenue: Com

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Analysis of the various operating expenses as percentages of gross profit for Jamba Juice in the last five years.

2016 2015 2014
TOTAL REVENUE (A) 158024 161676 218048
COST OF SALES 30586 33737 52236
LABOUR 41484 44732 61749
(B) 72070 78469 113985
GROSS PROFIT (A-B) 85954 83207 104063

Cost of sales to GP ratio - Cost of sales/ gross profit*100

Labor to GP ratio - Labor/gross profit*100

Cost of sales to GP ratio -   

35.58 40.55 50.20

Labor to GP ratio -

48.26 53.76 59.34

Company should not increase sales price of product because gross profit ratio is increasing year by year. Calculation is as follows.

Formula of calculation of gross profit ratio = gross profit/total revenue * 100

2016 2015 2014
GP RATIO -    54.39 51.47 47.72

General and administration overhead expenses are hurting Jamba Juice the most. These expenses are increasing despite of decrease in total revenue.

Jamba juice should control its General and administration overhead to increase its profit. it should try to decrease day to day office expenses like tea and refreshment exp,

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