Question
Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant to achieve a 12% ROI
Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant to achieve a 12% ROI on an investment of $8,000,000? Food sales are forecasted at $1,500,000 Food costs amount to $500,000 Total sales amount to $2,000,000 Beverage generate the remainder of sales with a variable cost of 25% The restaurant's tax rate is 30% Annual fixed costs amount to $1,000,000 A
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To calculate the level of sales required to achieve a 12 return on investment ROI for a twodepartment restaurant we need to determine the net profit a...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
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