Question
The following information is from the records of daphne's restaurant. Sales $400000 cost of sales 140000 cost of labor 104000 cost of overhead 120000 Assume
The following information is from the records of daphne's restaurant.
Sales $400000 cost of sales 140000 cost of labor 104000 cost of overhead 120000
Assume that the given cost of labor is 30.0% variable and 70.0% fixed.
a. calculate profit
b. calculate breakeven point in dollars
c. calculate dollar sales required to earn a profit of $50000
d. if variable costs increase by $8000, what level of dollar sales will be required to earn a profit of $36000?
e. if cost of overhead increases by 10%, what level of dollar sales will be required to earn the $36000 profit?
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