Pertinent information already calculated or given:

Sales Revenue: $639,111

Total Variable cost % (as percentage of sales revenue): 51.7%

Total Fixed Costs: $264,660

Average check: $9.59

Breakeven sales revenue = Fixed costs / (1 - VC%) = $264,660 / (1 - 51.7%) = $547,950

Breakeven in terms of number of guest using average check = $547,950 / $9.59 = 57,138 guests

The question is:

To increase the operating income by $20,000 in Year 2007s sales revenue, how many extra guests are required? 4C will spend $1,000 for additional advertising and promotion as a fixed cost for Year 2007.