Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A restaurant has monthly sales revenue of $100,000, variable cost of $65,000, and fixed cost of $30,000. A part of the fixed cost is a

A restaurant has monthly sales revenue of $100,000, variable cost of $65,000, and fixed cost of $30,000. A part of the fixed cost is a $6,000 fixed rent per month. If the owner switches from the $6,000 fixed rent to a variable rent of 6% of monthly revenue. If the owner wants an operating income of $20,000, what is the required revenue? (Round to the dollar) 172,414 151,724 109,000 None of above Question 9 (3 points) If the average check is higher, the total gross margin will also be higher. True False

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

Accounting Double Entry Exercises 40 Full Cycle Accounting Cases With Solutions

Authors: L Castelluzzo

1st Edition

1731173954, 978-1731173959

More Books

Students also viewed these Accounting questions