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Calculates the Estimated Cost of Miscellaneous Expenses for Grocery Stores

Other_Operating_Expense.Rd

This function calculates the estimated cost of miscellaneous expenses for a hypothetical store in a user-selected location based off of a user-selected percentage parameter. If not specified by the user, this percentage defaults to the industry average taken from Bizminer and Vertical IQ. These expenses include tax, administrative and repair costs, among others.

Usage

Other_Operating_Expense(Total_Estimated_Revenue, Percentage = 0.1088)

Arguments

Total_Estimated_Revenue

Total estimated revenue based on market size/location.

Percentage

Percentage of total estimated revenue spent on miscellaneous ("other") operating expenses selected via user input (defaults to the average percentage taken from Bizminer and Vertical IQ).

Value

The output returns the estimated dollar amount spent on these other expenses for a hypothetical grocery store in a given location.

Details

This function employs a default average percentage value from the financial analysis and market research firms Bizminer and Vertical IQ and is based upon calculations originally formulated by FFED ISU Extension and Outreach.

Author

Aaron Null