CVP analysis, income taxes The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.

Required

1. Compute the revenues needed to earn the target net income.

2. How many customers are needed to break even? To earn net income of $107,100?

3. Compute net income if the number of customers is 170,000.