P6.1 You have the following projections about the costs in a family restaurant for next year: Net income required: 22% after income tax on the owner's present investment of $80,000, income tax rate is 28%. Depreciation: Present book value (consolidated) of furniture and equipment is $76,000, depreciation rate is 20%. Interest: Interest on a loan outstanding of$35,000 is 896. Known Costs Variable Costs Insurance $ 3,000 Food cost, 38% of sales revenue License 2,500 wage cost, 34% of sales revenue Utilities 8,400 Other costs, 12% of sales revenue Maintenance 3,600 Administration 9,800 Salaries 41,600 a. What sales revenue would the restaurant have to achieve next year in order to acquire the desired net income after tax? b. What is the required average check needed to achieve the annual sales revenue objective if the restaurant is open 365 days, had 60 seats, and had an average seat turnover of 2.5 times per day? P6.11 Motley Motel's potential average room rate is calculated to be $62. Assume that this motel had three market segments. Vacation travelers use 75% of the room nights and are charged 100% of the rack rate. Business travelers use 15% of the room nights and are charged 90% of the rack rate. Sports teams account for 10% of the room nights and are charged 80% of the rack rate. a. Calculate the room rate by market segment. b. Prove that your calculations are correct, assuming that total annual room nights are 7,300. P7.7 Stella's Steak House has been operating for the past 10 years, and Stella has to negotiate her lease on the premises for the next 5 years. Her options are to pay a fixed monthly rent of $2,800 or to pay a variable monthly rent of 8% of her sales revenue. Over the next 5 years she anticipates her sales to average $525,000 per year. a. What is Stella's indifference point on an annual sales revenue basis? b. Which option should she choose? Explain