Question
The Lucjias Caf is a very popular restaurant in Skedattle Washingtoon. Below is an income statement for Lucjias Caf the year ended December 31, 2011.
The Lucjias Caf is a very popular restaurant in Skedattle Washingtoon. Below is an income statement for Lucjias Caf the year ended December 31, 2011. Lucjias Caf Income Statement For the year ended December 31, 2011 Revenues $2,098,400 Cost of Goods Sold, (all variable) 1,246,500 Gross Profit 851,900 Operating Expenses: Variable 222,380 Fixed 170,700 393,080 Administrative Expenses (all fixed) 451,500 Net Income $7,320 The average Dinner costs $40 each and the average lunch costs $20 each. Lucjias Caf sells twice as many lunches as it does dinners. The variable cost, as a percentage of sales for both lunches and dinners is the same. Assume that Lucjias Caf is open 305 days per year. For 2011, the current year, fixed operating expenses will increase by $41,215 and fixed Administrative Expenses will increase by $20,993. Required: a) Compute the number of Dinners and Lunches that Lucjias Caf will have to sell per day in 2010 in order to break even.
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