Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7:58 PM 26% o Sprint LTE coursehero.com Brain and Nui Soon live in Macon, Georgia. Two years ago, they visited Thailand. Nui, a professional chef,

image text in transcribed
7:58 PM 26% o Sprint LTE coursehero.com Brain and Nui Soon live in Macon, Georgia. Two years ago, they visited Thailand. Nui, a professional chef, was impressed with the cooking methods and the spices used in the Thia food. Macon does not have a Thai restaurant, and the Soons are contemplating opening one. Nui would supervise the cooking, and Brain would leave his current job to be the maitre d'. The restaurant would serve dinner Tuesday through Saturday. Brain has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Nui is planning two seating per evening, and the restaurant will be open 50 weeks per year. The Soons have drawn up the following estimates: Average revenue, including beverages and desserts............. 40 per meal Average cost of the food S 12 per meal Chef's and dishwasher's .............................S50,400 per year salaries Rent (premises, equipment) 4,000 per month Cleaning (Linen and premises) ..800 per month Replacement of dishes, cutlery. glasses.................................... 300 per month Utilities, advertising, telephone 1,900 per month Requirment: Compute annual breakeven number of meals and sales revenue for the restaurant. Also, compute the number of meals and the amount of sales revenue needed to earn operating income of75,600 for the year. How many meals must the Soons serve each night to earn their target income of75,600? Should the couple open the restaurant? Support your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Internal Audit

Authors: Mette Marx

1st Edition

0998140910, 978-0998140919

Students also viewed these Accounting questions

Question

Contrast variables that increase helping and aggressive behavior.

Answered: 1 week ago

Question

What magazine and ads did you choose to examine?

Answered: 1 week ago