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)?

What is the desired sales level in order to earn after tax income of $40,000?

Provide an income statement to prove it

Assuming Fixed costs are $137,500 and variable costs are 45%.What is the breakeven sales revenue and breakeven sales in units?

A hospitality operation has sales revenue of $462,000 with variable costs averaging 44%.Fixed costs are $188,000.The owner wants a net income after tax of $50,400.Use a tax rate of 28%.

Calculate the total additional sales revenue needed to support the desired net income after tax.

Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.

A restaurant with an average check of $14 per guest has the following average monthly figures: Sales $700,000 Variable costs $434,000 Fixed costs $168,000 What is the breakeven sales revenue? If actual sales revenue was $640,000, what would the restaurant's operating income be? If actual sales revenue was $640,000, how many fewer customers per month would be served than at the forecasted sales revenue level of $700,000?Assume that the average check remains at $14.

A small hotel has annual fixed costs of $88,000, variable costs of 68%, and a tax rate of 30%.The owner wants an after-tax net income of $33,600.What sales revenue must be achieved to provide $33,600 net income after tax?Show an income statement. What sales revenue are required to provide $33,600 operating income?Also assume that the hotel incurred additional debt of $50,000 at 8%/ year and that the terms of its lease increased by $10,000/ year.It was, however, able to reduce it variable costs by 5%/ unit.