The Following Information Pertains to the Classic Burger Restaurant Chain

question 131

Essay

The following information pertains to the Classic Burger Restaurant chain:
a.If sales increase by 10%,what will be the new level of EPS if the firm has 100,000 shares outstanding?
b.What is the percentage increase in EPS?
Explain the difference between the percentage increase in sales and the percentage increase in EPS.

---

Definitions:

Economic Motives

The underlying reasons that guide individuals or entities to make decisions regarding the allocation of resources.

Disposable Income

This is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Consumption

refers to the total amount of goods and services bought and used by households and individuals.

Savings Rate

The portion of disposable income not spent on consumption of goods and services but saved or invested, usually expressed as a percentage of disposable income.