Question
The Barcelona Restaurant has 120 seats and opens 360 days a year. The construction and start-up costs amount to $8,000,000. The owner has $6,000,000 in
The Barcelona Restaurant has 120 seats and opens 360 days a year. The construction and start-up costs amount to $8,000,000. The owner has $6,000,000 in cash that will be invested into the restaurant. The owner has a loan of $2,000.000 at an interest rate of 12%. The owner expects a 12% return on investment annually. The income tax rate is 30%. The estimated fixed charges and costs (excluding income taxes) is $1,500,000. The undistributed expense is $500,000. The forecasted food cost is $750,000. The projected average seat turnover is 2.5.
1. What is the desired Net Income?
2. What is the Total fixed costs and charges?
3. What is Contribution Margin?
4. What is the Total Revenue?
5. What is Average Check per cover?
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