CVP analysis, income taxes The Rapid Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $450,000 per year Service varies from a cup of coffee to full meals. The average sales check per customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000.

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 $105,000?

3. Compute net income if the number of customers is 150,000.