1.

2.

3.

The Swift Feast has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $405,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $9.00. The average cost of food and other variable costs for each customer is $3.60. The income tax rate is 30%. Target net income is $151,200. Requirements 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 $151,200? 3. Compute net income if the number of customers is 130,000. Requirement 3. Compute net income if the number of customers is 130,000. Determine the formula that is used to compute the net income when the number of customers is 130,000, then compute the net income. Original target net income + Change in net income Net income + The Pawlak Company has three product lines of beltsA, B, and Cwith contribution margins of $3, $2, and $1, respectively. The president foresees sales of 320,000 units in the coming period, consisting of 32,000 units of A, 160,000 units of B, and 128,000 units of C. The company's fixed costs for the period are $204,000. Read the requirements. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product line. (Round to the nearest whole number.) The breakeven point is 12,750 bundles. This translates to a breakeven point of units of A units of B, and units of C. For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Total Operating Contribution Case Costs Income Margin Percentage a. 500 $ 400 $ 900 $ 1,400 78 % Revenues Costs Costs $ 2,300 $ $ 2,500 $ 1,700 $ $ 1,100 $ 700 $ b. 400 $ 2,100 $ 400 32 % C. 400 $ 1,100 $ 0 36 % d. $ 1,600 $ 400 75 %