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The Express BanquetExpress Banquet has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $450,000 per year.

The

Express BanquetExpress Banquet

has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total

$450,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is

$ 8.00.The average cost of food and other variable costs for each customer is $ 3.20 The income tax rate is

30%. Target net income is $105,000.

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 $105,000?

3. Compute net income if the number of customers is 165,000.

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