E7.6

Given the following information, determine variable cost per dollar of sales revenue and the total fixed costs, using both the high and low data to confirm your calculations. The high total sales revenue was $28,000 and the low sales revenue was $23,000. The high and low operating costs were $20,000 and $17,000 respectively.

E8.6

A restaurant has an average check of $12.75, with an average variable cost of $4.85. Fixed costs are $142,200. Calculate the following:

a. What is the unit contribution margin?

b. What are breakeven units?

c. What is the variable cost percentage?

d. What is the contribution as a percentage?

e. What is breakeven sales revenue?