The Express Meal has two restaraunts that are open 24 hours a day. Fixed costs for the two restaraunts together are $400,000 per year. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.50. The income tax rate is 30%. Target net income is $140,000.

Requirements:

a) compute the revenues needed to earn the target net income.

b) how many customers are needed to break even? to earn net income of $140,000?

c) Compute net income if the number of customers is 150,000.