Question
The Bocilli restaurant invested $9,000,000 and expected a 12% ROI on an investment. What is the level of sales required to achieve a 12%
The Bocilli restaurant invested $9,000,000 and expected a 12% ROI on an investment. What is the level of sales required to achieve a 12% ROI and cover all costs. Food generates 75% of sales with food cost of 30% Beverage generates 15% of sales with a CMR of 0.85 Gift Store accounts for the rest of the sales with a CMR of 0.7 The tax Rate is 17%. Annual fixed costs are $1,150,000 1. What is the Pre-Tax income? 2. What is the weighted contribution margin ratio? 3. What is the required sales?
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