1. A restaurant has sales of $300,000 during the same period in which its variable costs are

$185,300 and its fixed costs are $103,000. What are the restaurant's profits for this period?

You must show your work to receive credit.

2. Using the information from question 1, calculate the restaurant's variable rate. You must show your work to receive credit.

\3. A restaurant has a variable rate of 0.584. In one month its variable costs are $72,487.

What should sales be for that month? You must show your work to receive credit.

4. What is the contribution rate for a company with a variable rate of 0.664? You must

show your work to receive credit.

5. Variable rate covers all variable costs. What does the contribution rate cover?

6. A restaurant has variable costs of $76,244 and fixed costs of $49,902 for a month. The profit for that month is $3,870. Calculate the total sales dollars, variable rate, and contribution rate for this restaurant. You must show your work to receive credit.

7. If a restaurant has a variable rate of 0.574 and annual fixed costs of $288,750, what will the profit or loss be on $650,000 in annual sales? You must show your work to receive credit.

8. Using the information in question 7, what will the profit or loss be if annual sales are $750,000? You must show your work to receive credit.

9. What is the annual break-even point in sales for a restaurant with a variable rate of

0.673 and annual fixed costs of $187,500? What is the break-even point in number of customers if the guest check average is $67.87? You must show your work to receive credit.

10. If the owner of the restaurant in question 9 wants to make $20,000 in profit, how many dollars in sales must the restaurant generate? You must show your work to receive credit. How many customers does that represent? You must show your work to receive credit.

11. A restaurant manager is considering keeping the business open two hours later. He estimates his labor cost for the additional two hours to be $287 and the cost for additional utilities and other expenses to be $71. If the variable rate (covering all other variable expenses) for the restaurant is 0.614, how much additional business in sales does the manager need to bring in during those two extra hours to break even? You must show your work to receive credit.

12. List the four classifications of marketing approaches?

13. List four examples of external marketing

List four examples of internal marketing

Describe the difference between internal and external marketing in 15 to 25 words.

14. List three ways in which a POS system helps a manager to drive revenue and three ways in which it helps a manager to control costs.

Drive Revenue (3 ways

Control Costs(3 ways)