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 divestment of sizzler would be $96,561 spread evenly over one year.

What is CFG’s economic profit (every three months) after divestment? Answer number to the nearest whole number and include a negative sign if it is an economic loss (with no decimal places, $ sign, spaces or commas).

Answer rating: 100% (QA)

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