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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 52P

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