A regional fast food chain, serving a menu of mainstream products (E.g. hamburgers, fries) is experiencing wildly variable profits among its many locations. What factors should the chain consider? Profitability analysis Year 2006 Revenues 17,735,000 Cost of goods sold 10,641,000 Variable non-manufacturing costs 499,600 Contribution margin 6,594,400 Fixed manufacturing costs 1,540,000 Fixed non-manufacturing costs 2,086,000 Operating profit 2,698,400 Year 2004 2005 2006 Revenues 16,623,000 18,033,100 17,735,000 Cost 14,140700 15,084,500 14,766,600 Profit 2,482,300 2,948,600 2,698,400 Revenues of most profitable location (Vienna, Mariahilfer Straße): 2,835,300 Revenues of least profitable location ( Hainburg, Hauptplatz): 452,600 The simple profitability analysis shows that profits through out last three years are not rising. We noticed slight growth of revenues in year 2005. This was caused by opening new locat......

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