Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Consider a pub-style restaurant, Azura. The restaurant serves full meals and beverages including specialty coffees and cocktails. The following information is available related to its'

image text in transcribed
Consider a pub-style restaurant, Azura. The restaurant serves full meals and beverages including specialty coffees and cocktails. The following information is available related to its' financials: Fixed costs $ 1,237,500.00 Average sales bill per customer (includes food and drink) $ 22.00 Average variable cost per customer (includes food and drink) $ 8.80 Income tax rate 30% Target net income $ 288,750.00 REQUIRED: 1. How much revenue is needed to earn their target net income of $288,750? (5 marks) 2. How many customers are needed to earn their target net income of $288,750? (5 marks) 3. How many customers are needed to break-even? (5 marks) 4. If they receive 150,000 customers, what will be the corresponding net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions