Question
John runs an Italian restaurant in Ottawa, Ontario. He spends $1,800 per month in rent and $475 per month in additional utilities. He pays 10
John runs an Italian restaurant in Ottawa, Ontario. He spends $1,800 per month in rent and $475 per month in additional utilities. He pays 10 employees $20,000 per year in wages, and takes a salary of $55,000 per year. This year, he invested in some new carpeting and chairs for $8,000 and he paid $800 for a new computer. Additionally, he bought some more reliable debit / credit card machines for $850. He pays $90 per month in insurance and $500 per month for his bookkeeper. For each meal he sells, he pays approximately $4 in meat, $1 in cream, $2 in fruits and vegetables, $0.50 in pasta, and $0.45 in additional food cost?Assume that meals John sells have an average selling price of approximately $24.95. What is Johns breakeven for a typical year?
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