Hi,
Can you please advise on how to set up the following problem?
Daisy Cosmetics store chain, which already has 8 stores, is about to expand by opening 5 more stores on different streets. The upfront costs to open these new stores are $39,000 in total. All other operating costs are the same as those of current stores, with the structure as follows: Operation costs: 15%, marketing costs: 10%, cost of goods sold: 45%, labor cost: 20%, and other costs: 10%. Total revenue of all stores during the first month after opening 5 new stores was $356,000, with the profit margin being 32%. Calculate the average cost of each current and new store (new store’s cost includes the upfront cost of opening ).
Many thanks!
