Park Company received an offer to purchase two more locations. Each location is similar in size and expenses.

What is the reasonable price to pay for pushing these two more locations?

Expecting to earn a 15% return, 25% return, 35% return?

Gross Revenue						420000
Expenses
	Employee
		Admin			22000
		Producers			134000
		Office Manager			0
		Payroll Tax			12650
		Health Insurance			0
		Work Comp			1365
			Total Employee Burden			170015
	Rent					34000
	Franchise fee					115000
	Automobile expense					4000
	Business License and Permits					1670
	Client Development					0
	Computer and Technology					2800
	Insurance					350
	Office Expense					3100
	Postage					3356
	Professional Fees					1350
	Telephone and Internet					4259
	Travel					1035
	Retirement Plan Executive					0
		Total Expense				340935
	Net Income					79065

Answer rating: 100% (QA)

The reasonable price to pay for pushing these two more locations would be based on the ... View the full answer