CVP analysis and income taxes.

The Express Meal has two restaurants that are open 24 hours a day. Fixed cost for the two restaurants is together total $400,000 per year. Service varies from a cup of coffee to the full meals. The average sales check per customer is $8.50. The average cost of food and other variable cost for each customer is $3.50. The income tax rate is 30%. Target net Income is $140,00.

a. Compute the revenues need to earn the target Net Income?

b. How many customers are needed to break even? To earn net income of $140,000.

c. Compute NET INCOME is the number of customers is 150,000