ch sales 248000 Branch contribution margin % 25 Annual rent cost 10475 Other branch direct costs 5422.5 Branch fit out costs 7175 Allocated head office costs 1,1099 If the A branch opens, annual sales of the B branch will fall by 9%. If the A branch does not open, sales at the B branch will fall by 3%. The annual sales at the B branch are $3,844,100. Determine any incremental benefit from opening the A branch. $ Contribution Rent Other direct costs Fit out costs Head office costs Opportunity cost Incremental benefit
ch sales 248000 Branch contribution margin % 25 Annual rent cost 10475 Other branch direct costs 5422.5 Branch fit out costs 7175 Allocated head office costs 1,1099 If the A branch opens, annual sales of the B branch will fall by 9%. If the A branch does not open, sales at the B branch will fall by 3%. The annual sales at the B branch are $3,844,100. Determine any incremental benefit from opening the A branch. $ Contribution Rent Other direct costs Fit out costs Head office costs Opportunity cost Incremental benefit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
the revenues and costs associated with the opening of a new branch in the A.
| Branch sales | 248000 |
| Branch contribution margin % | 25 |
| Annual rent cost | 10475 |
| Other branch direct costs | 5422.5 |
| Branch fit out costs | 7175 |
| Allocated head office costs | 1,1099 |
If the A branch opens, annual sales of the B branch will fall by 9%. If the A branch does not open, sales at the B branch will fall by 3%. The annual sales at the B branch are $3,844,100.
Determine any incremental benefit from opening the A branch.
| $ | |
| Contribution | |
| Rent | |
| Other direct costs | |
| Fit out costs | |
| Head office costs | |
| Opportunity cost | |
| Incremental benefit |
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