Project 4 Part Four Problem (20 points)
Gulfcoast Selections is a restaurant chain operating in select cities in Florida. Select financial data is presented
below to provide you with the necessary content for perfromance evaluation purposes.
	Tampa	Fort Myers	Panama City
	Restaurant	Restaurant	Restaurant	Total
Sales revenue	3,500,000	1,600,000	1,400,000	6,500,000
Variable costs	975,000	475,000	460,000	1,910,000
Fixed costs	1,860,000	725,000	700,000	3,285,000
Operating income	665,000	400,000	240,000	1,305,000
Interest costs on long-term debt at 10%				450,000
Income before income taxes				855,000
Income taxes at 30%				256,500
Net income				598,500
Net book values at the end of 2018:
Current assets	660,000	500,000	400,000	1,560,000
Long-term assets	2,340,000	1,500,000	600,000	4,440,000
Total assets	3,000,000	2,000,000	1,000,000	6,000,000
Current liabilities	300,000	150,000	50,000	500,000
Long-term debt				4,500,000
Stockholders' equity				1,000,000
Total liabilities and stockholders' equity				6,000,000
Requirement One:
Calculate ROI for each of the three
restaurants by using the condensed ROI formula
Requirement Two:
Calculate Profit Margin (Return on Sales) for each
Calculate Asset Turnover for each
Requirement Three:
Calculate ROI for each of the three again, but
assume assets decrease by 200,000 for each one.
Sales and costs remain the same as presented.
Requirement Four:
Calculate ROI for each of the three again, but
assume sales increase by 10% for each one.
Assets and fixed costs remain the same as presented.