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The Express Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $409,500 per year. Service
The Express Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $409,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $9.00. The average cost of food and other variable costs for each customer is $4.50. The income tax rate is 30%. Target net income is $100,800. 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 $100,800 ? 3. Compute net income if the number of customers is 150,000
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