Marcia curtis is the vice president of development for Tamales to go a rapidly expanding chain of resturant featuring take tamales and other mexican food specialties. Currently, the chain has 150 units and average unit volume is $800,000 per year. Annual per-unit revenue growth for opened units is 5 percent per year. Tonya Gonzalez, the chain's president, has promised company stockholders the chain will experience 12 percent overall reveue growth in the next year. Assuming that per-unit growth on existing units continues to average 5 percent, calculate how many total operating units Marcia will need to have open next year to meet Tonya's goal of a 12 percent overall increase in the chain's revenue. Total Revenue-$120,000,000 Per Unit Revenue-$800,000 Total Number of Units- 150
Marcia curtis is the vice president of development for Tamales to go a rapidly expanding chain of resturant featuring take tamales and other mexican food specialties. Currently, the chain has 150 units and average unit volume is $800,000 per year. Annual per-unit revenue growth for opened units is 5 percent per year.
Tonya Gonzalez, the chain's president, has promised company stockholders the chain will experience 12 percent overall reveue growth in the next year. Assuming that per-unit growth on existing units continues to average 5 percent, calculate how many total operating units Marcia will need to have open next year to meet Tonya's goal of a 12 percent overall increase in the chain's revenue.
Total Revenue-$120,000,000
Per Unit Revenue-$800,000
Total Number of Units- 150
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