The Eastman Family Restaurant is open 24 hours per day. Fixed costs are $21,000 per month. Variable costs are estimated at $11 per meal. The average revenue is $16 per meal.

Required:

A) Assuming that the restaurant currently serves 9,000 meals per month, compute:

- the operating profit per month using the marginal costing P&L or equation

- the breakeven point in number of meals

- the safety indexin number of meals

- the operating leverage

B) Compute the number of meals that must be served each month to earn a profit before taxes of $39,000 per month.

C) Assume that fixed costs increaseby$10,000 per month. How manyadditional mealsmust be served to earn a profit before taxes of $39,000 per month?