State- required sales revenue. P8.3 A restaurant is being planned that will require an investment of $150,000 in equipment by the owner. The following shows forecasted variable cost percentages, and identifiable known costs (considered fixed and semi- fixed costs at start-up). Variable costs will be: Food cost is 38% of sales revenue Wage cost is 27% of sales revenue Other variable costs are 10% of sales revenue Other known costs will be: Management salary and wages expense Insurance expense Advertising expense Utilities and telephone expense Rent expense Equipment depreciation expense $48,000 2,800 4,500 3,000 21,600 20% a. What is the breakeven level of sales revenue for the restaurant? Pre- pare a contribution margin income statement to confirm the breakeven calculations. b. What required sales revenue is needed if the owner wants an 18% op- erating income (before-tax) return on investment? Prepare a contribu- tion margin income statement to confirm the CVP calculations