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The rapid meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $450000 per year. Service
The rapid meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $450000 per year. Service varies from a cup of coffee to full meals. The avaerage sales bill per customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rte 30%. Target net income is $105000. | |||||||||||||||||||||||||||||||||||
Compute the revenue needed to earn the target net income. | |||||||||||||||||||||||||||||||||||
How many customers are needed to earn net income of $105000? How many customers are needed to break even? | |||||||||||||||||||||||||||||||||||
Compute net income if the number of customers is 150000. |
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