Question
Bottom Up Restaurant: Lauren owns a restaurant that served 9,250 covers in 2017 and has forecasted that the restaurant will serve 10% more covers in
Bottom Up Restaurant: Lauren owns a restaurant that served 9,250 covers in 2017 and has forecasted that the restaurant will serve 10% more covers in 2018. She has set the restaurant's Net Income After Tax goal for 2018 as $75,000.
The cost of sales are forecasted to represent 32% of total revenues and they are consistent with their other variable cost %'s from year to year. Variable cost #1 is consistently 18% of total revenues and Variable Cost #2 is consistently 3.5% of total revenues.
Using this information, and the information provided about their fixed costs, look to calculate required revenue to reach Sally's goal and calculate what the required average check needs to be to reach it.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started