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(Q.6) The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service
(Q.6) The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.40. The income tax rate is 30%. Target net income is S107.100. Questions: 1. Compute the revenues needed to earn the target net income. 2. How many customers are needed to break even? 3. How many customers are needed to earn net income of $107,100? 4. Compute net income if the number of customers is 170,000
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