Stephen is considering buying a $80$ seat restaurant with an average daily turnover rate of $5$ and an average check of $$30.$ The restaurant opens $300$ days per year. Its total variable costs are $$400,000.$ Fixed costs are $$600,000$ a year.

Stephen was thinking about joining a restaurant franchise to increase profit. The franchisor requires a fixed loyalty fee of $$10,000$ per year, and $5\%$ of the revenue to be contributed to the brand. How much revenue does the restaurant need to generate to achieve an operating income of $ $200,000?$

Question $23$ options:

$974587$

$967812$

$964712$

$965562$