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I need help with the bottom question B E F F G H D Eunice manages a Thai restaurant in a primarily Asian section of

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B E F F G H D Eunice manages a Thai restaurant in a primarily Asian section of a major West Coast city. She is interested in determining dollar sales and number of guests needed to break even and to generate her desired profits. Her check average (selling price) is $16.00, her variable cost per unit (guest) is $5.60, and her fixed costs are $170,000. Calculate her variable cost % of sales and Contribution margin%, and her break-even point. You'll need to also calculate before-tax profit to figure out sales dollars needed to achieve Eunice's desired after-tax profit of $24,000. 3 4 Per Unit (Guest) Percentage $16.00 100% $5.60 35% $10.40 65% $170,000.00 5 6 Selling Price (guest check average) 7 Variable Costs 8 Contribution Margin 9 10 Fixed costs 11 12 Break-even point in sales dollars 13 14 Desired after tax profit 15 Tax rate 16 Before tax profit Q1 010 Q3 04 09 $256,603.77 $24,000.00 40% $24,000.00 D Desired after tax profit Tax rate s Before tax profit $24,000.00 40% $24,000.00 7 Sales dollars to achieve desired after- tax profit $292,858.00 1 2 3 4 Eunice's chef is looking at these numbers, and doesn't understand why you can't simply add the 5 before-tax profit you calculated (cell B16) to the break-even point (B 12) to get the sales 6 dollars required for the $24,000 in after-tax profit. In your own words, explain why you can't 7 do this. 8 -9 Answer: 0 51

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