Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me again Chapter 19 Decision Case 1 (page 958) Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand.
please help me again
Chapter 19 Decision Case 1 (page 958) Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in the Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maitre d'. The restaurant would serve dinner TuesdaySaturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a larger party. Linda is planning two seating per evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: ___________________________________________________________ Average revenue, including beverages and dessert .....$45 per meal Average cost of food.........................................$15 per meal Chef's and dishwasher's salaries...........................$5,100 per month Rent (premises, equipment).................................$4,000 per month Cleaning (linen and premises).............................. $800 per month Replacement of dishes, cutlery, glasses....................$300 per month Utilities, advertising, telephone............................. $2,300 per month ____________________________________________________________ Requirements 1. Compute the annual breakeven numbers of meals and sales revenue for the restaurant. 2. Also compute the number of meals and the amount of sales revenue to earn operating income of $75,600 for the year. 3. How many meals must the Homs serve each night to earn their target income of $75,600? 4. What factors should the Homs consider before they make their decision as to whether to open the restaurant or notStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started