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    Concession Stand Operations Management

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    The local university is accepting bids for the hot dog and cold drink concession at the new stadium. The contract is for a 5 year period. You believe that a bid of $40,000 will win the contract. A preliminary analysis indicates that annual operating costs will be $35,000 and average annual sales will be $50,000. The contract can be written off during the 5 years. Taxes are at 40% rate, and your goal is to make a 20% return on your investment.

    I have to use Excel to set up the problem and to find the solution with Excel.

    A. Will you meet your goal if you use straight-line depreciation?
    B. Would you meet your goal using sum-of-the -years' digits depreciation?

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    https://brainmass.com/business/business-management/concession-stand-operations-management-161255

    Solution Summary

    This solution analysis the profit made at a concession stand at a stadium.

    $2.19