1) A restaurant has sales revenue of $500,000, variable costs of $200,000, and fixed cost of $200,000. Desired net income (after-tax) is $40,000 and the tax rate is 30%. What is the operating income (before tax)?

2) Based on Question 1, what is the desired Sales level in order to earn after-tax income of $40,000?

3) Provide an income statement to prove question 2

4) Fixed costs are $137,500 and variable costs are 45%. What is the breakeven sales revenue?

5) Fixed cost are $137,500 and variable costs are 45% or $10/unit. What is the breakeven sales in units?