CVP, income taxes. The Rapid Meal has two restaurants that are open 24 hours per 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 for each customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 307o. Target net income is $105,000.

Required 1. Compute the total dollar sales needed to obtain the target net income.

2. How many sales checks are needed to earn net income of $105,000? To break even?

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