- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
jenson Co owns the rights to a fast food franchise. On 1 April 20X4 it sold the right to open a new outlet to Mr Verstappen. The franchise is for five years. Jenson Co received an initial fee of $50,000 for the first year and will receive $5,000 per annum thereafter. Jenson Co has continuing service obligations on its franchise for advertising and product development that mount to approximately $8,000 per annum for each franchised outlet. A reasonable profit margin on the provision of the continuing services is deemed to be 20% of revenues received.
please help in the answer it mentioned that the profit in the 20 % for year 1 and approximately 46 %
how to get these figure i don’t understand ?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.