Question
A restaurant has sales revenue of $500,000, variable costs of $200,000, and fixed costs of $200,000.Desired net income (after tax) is $40,000 and the tax
A restaurant has sales revenue of $500,000, variable costs of $200,000, and fixed costs of $200,000.Desired net income (after tax) is $40,000 and the tax rate is 30%. What is the operating income (before tax)? Based on Question 1, what is the desired sales level in order to earn after tax income of $40,000? Provide an income statement to prove question 2 Fixed costs are $137,500 and variable costs are 45%.What is the breakeven sales revenue? Fixed costs are $137,500 and variable costs are 45% or $10/ unit.What is the breakeven sales in units?
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