Last year a local restaurant realized sales of $250,000 with fixed costs of $150,000 and total variable costs of $60,000.

a) What was the restaurants contribution rate (as a decimal) last year?

b) If the restaurant has the same contribution rate this year, what net income can be expected this year from a revenue of $180,000? Use the rounded answer from part (a) to solve this.

c) If the restaurant has the same fixed and variable costs this year, what sales this year will result in a profit of $47,000? Use the rounded answer from part (a) to solve this.

d) Suppose that the fixed costs this year rise to $170,000 and the variable costs remain the same. What is break-even revenue? Use the rounded answer from part (a) to solve this.

e) Suppose that the fixed costs remain at $150,000 this year but the variable costs fall to $47,000. What is the break-even revenue? Calulate a new contribution rate to solve this.