Sandwich Ltd prepares meals for sale 24 hours a day. Fixed cost for the restaurant is $450000 per year. On average the sales check per customer is $8.00. The average cost of food and other variable costs is $3.20 per customer. The income tax rate is 30%. Target net income is $105000.

a) What revenues are needed to earn the target net income?--- (7 marks)

b) How many customers are needed to breakeven? To earn net income of $105000? (10 marks)

c) What is the net income if the number of customers is 150000? (8 marks)