Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Express Banquet Express Banquet has two restaurants that are open 2 4 hours a day. Fixed costs for the two restaurants together total$ 4


The Express Banquet Express Banquet has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total$495,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $ 8.25. The average cost of food and other variable costs for each customer is $ 3.30$3.30. The income tax rate is 3030%. Target net income is $ 138,600.

Requirements

1. Compute the revenues needed to earn the target net income.

2. How many customers are needed to break even? To earn net income of $ 38,600?

3. Compute net income if the number of customers is 45,000.


Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 To compute the revenues needed to earn the target net income Target Net Income 138600 Lets denote ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

14th Edition

978-0132960649, 132960648, 132109174, 978-0132109178

More Books

Students also viewed these Accounting questions

Question

Under what conditions is a market-based transfer price optimal?

Answered: 1 week ago

Question

8. Name the three catecholamine neurotransmitters.

Answered: 1 week ago