Gb540 Unit 6 Assignment

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Page 2McDonald’s Marketng PlanMcDonald’s Marketing Plan4.0 Financials4.1 Break-even AnalysisDuring the first year of the grilled McFish item, McDonald’s expects to sell an estimate of 19,440,000 of the new menu item. This figure is based on an average sale of $6.95 per sandwich/wrap and based on an 18% volume in sales as the current fish sandwich sells 300 million yearly. The variable expense of the new grilled menu item is $3.15 which means that McDonald’s would have a net revenue of $3.80 per sandwich. The total net revenue for the first year would be an estimate of $73, 872,000. This figure is based on McDonalds capturing their current market demographics as well as adding new target segments such as this healthier food item will lead the fast food industry by expanding to the more health conscious market segments.Fixed costs for the first year will be high as it is in most fast food restaurants. However, even with the fixed costs of $40,000,000; McDonald’s will still have a profit in the first year of $33,872,000.First Year SalesTo±alPer Uni±Sales (19,440,000 i±ems)$135,108,000$6.95Less Variable Expenses$61, 236,000$3.15Prof± Margin$73,872,000$3.80Less Fixed Expenses$40,000,000Ne± Operatng Income$33,872,000 Based on the first year sales, McDonalds would have already broken-even and have experienced a profit for the year. It will take McDonalds 7 months from the launch date before they finally break even. During month 6, the loss would be $-3,064,000, but during month 7 the company will not only break even, but will also see a net income of $3,092,000 based on the charts below:Month 6 SalesMonth 7 SalesLess Variable Expenses$35,721,000$3.15 To±alPer Uni±Sales (9,720,000 i±ems)$67,554,000 $6.95 Less Variable Expenses$30,618,000 $3.15 Prof± Margin$36,936,000 $3.80 Less Fixed Expenses$40,000,000 Ne± Operatng Loss($3,064,000)

2 SOCIAL PROBLEMS AND FREE MARKETS A social problem, which is classified as an illegal good or service and where free markets are restricted to serve or act upon are the issues surrounding human trafficking. This paper will provide human trafficking and its relationship to social problems, free markets supply and demand along with ethical issues. Included also will be free market features that may be presented to help lessen or reduce the societal issues through independent market operations of supply and demand. Discussion on the involvement of the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present is discussed. “Trafficking in persons is a serious crime and a grave violation of human rights. Every year, thousands of men, women and children fall into the hands of traffickers, in their own countries and abroad. Almost every country in the world is affected by trafficking, whether as a country of origin, transit or destination for victims” (Milivojevic, & Pickering, 2013, para. 1). Human trafficking is a particularly serious social issue where free markets are not allowed to function. Over the years the systematic investigation of trafficking has increased. The exchange of human being is prohibited by law, and this includes use for prostitution, slave trading, which the individuals are taken to a different country forcibly. Social Problems of Human Trafficking The social problems related to human trafficking include economic, political, and social issues. “ Many groups look at the issue in the framework of human rights abuse. Then there are sociological, cultural, historical, feminist and other political views as well,” (Economics and Trafficking, 2013, para. 1). There are many incidences of child trafficking and labor trafficking occurrences, and with the addition of many men, women and child victims the totals of the

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