Taco Hut is a restaurant chain that has 3 restaurants located throughout Canada,
ID: 2550672 • Letter: T
Question
Taco Hut is a restaurant chain that has 3 restaurants located throughout Canada, each of which is an investment centre.
The company’s 20x9 financial information is as follows:
Restaurant 1
Restaurant 2
Restaurant 3
Revenues
$894662
$1283980
$665662
Variable costs
194228
329933
200747
Fixed costs
378185
582547
375549
ROI
38.1%
28.6%
15.0%
RI
$237715
$179271
$29905
Based on the information above, what are Taco Hut’s total assets?
Restaurant 1
Restaurant 2
Restaurant 3
Revenues
$894662
$1283980
$665662
Variable costs
194228
329933
200747
Fixed costs
378185
582547
375549
Explanation / Answer
Calculation Taco Hut’s total assets
Particulars
Restaurant 1
Restaurant 2
Restaurant 3
Revenues
$894,662
$1,283,980
$665,662
Less: Variable costs
$194,228
$329,933
$200,747
Less: Fixed costs
$378,185
$582,547
$375,549
Operating Income (A)
$322,249
$371,500
$89,366
Add: RI (Residual Income) (B)
$237,715
$179,271
$29,905
Return on Investment in $ (C=A-B)
$84,534
$192,229
$59,461
ROI % (D)
38.1%
28.6%
15%
Assets (E = C/D)
$221,874.02
$672,129.37
$396,406.67
Total Assets
$1,290,410.05
Calculation Taco Hut’s total assets
Particulars
Restaurant 1
Restaurant 2
Restaurant 3
Revenues
$894,662
$1,283,980
$665,662
Less: Variable costs
$194,228
$329,933
$200,747
Less: Fixed costs
$378,185
$582,547
$375,549
Operating Income (A)
$322,249
$371,500
$89,366
Add: RI (Residual Income) (B)
$237,715
$179,271
$29,905
Return on Investment in $ (C=A-B)
$84,534
$192,229
$59,461
ROI % (D)
38.1%
28.6%
15%
Assets (E = C/D)
$221,874.02
$672,129.37
$396,406.67
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