Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7.6. How many customers and what revenue will the restaurant need each month to break even? The monthly costs consist of rent of $10,000, interest

image text in transcribedimage text in transcribed

7.6. How many customers and what revenue will the restaurant need each month to break even? The monthly costs consist of rent of $10,000, interest of $3,500, fixed labor cost of $12,000, other fixed cost of $5,000. Food cost averages 38% of revenue and variable labor and other variable costs are 27% of revenue. The guest check average is $14.50. b. What revenue and customer count will be needed to generate a profit that is 10% of revenue? 7.7. The hotel has 85 rooms, an average daily rate (ADR) of $88, and a per occupied room cost of $12. Its fixed costs are $102,000 per month. What is the required occupancy percent to realize a monthly profit of $15,000? 7.8. Determine the number of guest required for the operation to generate a profit of $15,000 per month. It has fixed cost of $84,000 each month. The operation sells the following: Price Item 1 $ 12.50 Item 2 9.75 Item 3 8.50 VC $5.75 4.25 4.00 Unit Sales % 25% 30% 45% b. What daily seat turnover is required assuming the operation has 150 seats and is open 360 days a year? c. What must be the annual revenue to cover the costs and generate the desired profit? 7.9. The 100 room hotel has three types of rooms with the rates and sales shown below. Determine the annual occupancy and revenue required to generate an annual after tax profit of $120,000. The fixed costs average $21,000 per month. The tax rate is 25%. ADR Singles $45 Double 55 Triples 65 Unit Sales % 50% 30% 20% The cost of preparing each room is $17 per occupied room. 7.10. A 125 room hotel has an annual fixed cost of $1,150,000 and a profit goal of 150,000. With an average room rate of $78 and average variable cost of $34 per room sold, determine the annual number of rooms sales, occupancy percentage, and revenue required

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

Auditing Principle And Practice

Authors: Satyabrata Tripathy

1st Edition

9332519382, 9789332519381

More Books

Students also viewed these Accounting questions

Question

Connect with your audience

Answered: 1 week ago