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2. A restaurant has an average guest check of 10 dollars, cos is 3 per meal, variable labor is 2 dollars per meal, and variable
2. A restaurant has an average guest check of 10 dollars, cos is 3 per meal, variable labor is 2 dollars per meal, and variable operating expenses is 1 per meal. Fixed costs include depreciation of 10,000 per year and salaries of 3000 per month. Complete the following:
- What is the selling price, variable cost per unit, contribution margin per unit, contribution margin %, variable cost %, and total annual fixed costs.
- What is the breakeven # of units for a year and the break even sales dollars for a year
- If the restaurant wants to make 40,000 in operating income in the year, what is the # units and sales they need to make in total.
- If the restaurant wants to add another salaried manager for 1000 per month, what is the additional monthly revenue they need to have to cover the salary?
- If the restaurant wants to add 7000 per year in fixed costs, what is the additional annual sales they need to have to cover the new cost?
- Prepare an annual income statement at selling 10,000 meals per month use the original information above.
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