A restaurant has budgeted sales revenue of $880,000 for the next year. Variable costs are 70 percent

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A restaurant has budgeted sales revenue of $880,000 for the next year.

Variable costs are 70 percent of sales revenue and fixed cost is $244,000.

Answer the following questions:

a. What are the total variable costs in dollars?

b. What is the restaurant’s gross margin expected to be?

c. What is the amount of operating income (before tax)?

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Hospitality Management Accounting

ISBN: 9780471092223

8th Edition

Authors: Martin G Jagels, Michael M Coltman

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Question Posted: Jun 28, 2024 10:06 AM

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A restaurant has budgeted sales revenue of $880,000 for the next year. Variable costs are 70 percent

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Hospitality Management Accounting

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