Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

The Express BanquetExpress Banquet has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $ 495 comma 000$495,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $ 8.25$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 comma 600$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 $ 138 comma 600$138,600?
3. Compute net income if the number of customers is 145 comma 000145,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Step: 3

blur-text-image

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

Measuring ROI In Learning And Development Case Studies From Global Organizations

Authors: Patricia Pulliam Phillips, Jack J. Phillips

1st Edition

1562867997, 9781562867997

More Books

Students also viewed these Accounting questions