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The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year.
The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meab. The average sales check per customer is $8.75 The average cost of food and other variable costs for each customer is 53.50. The income tax rate is 36%. Target net income is $117,600. 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 $117,600? 3. Compute net income if the number of customers is 170,000 d to compute how many customers are needed to earn net income of $117,600, then compute the number of customers needed Change in net income Contribution margin Fixed costs Original target net income Total revenues Variable costs / Sales check per customer Customers needed to earn $117.600 come if the number of customers is 170.000 to compute the net income when the number of customers is 170,000, then compute the net income +Change in net income Net income
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