Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Red Dragon, a local Thai restaurant, expects sales to be $850,000 in January. Its average transaction fees charged by the credit and debit card

image text in transcribed
image text in transcribed
The Red Dragon, a local Thai restaurant, expects sales to be $850,000 in January. Its average transaction fees charged by the credit and debit card issuers are as follows: Credit cards: $0.40 per transaction + 4% of the amount charged Debit cards: $0.25 per transaction + 1% of the amount charged Read the requirements. Requirement 1. How much of the total sales revenue is expected to be paid in cash? The total sales revenue expected to be paid in cash is Enter any number in the edit fields and then click Check Anrur verage customer restaurant bill is $50. Only 40% of the restaurant bills are paid with cash; 50% are paid with credit cards and 10% with debit cards. The - X Requirements 1. How much of the total sales revenue is expected to be paid in cash? 2. How many customer transactions does the company expect in January? 3. How much of the total sales revenue is expected to be paid with credit cards? 4. How many customer transactions will be paid for by customers using credit cards? 5. When budgeting for January's operating expenses, how much should the restaurant expect to incur in credit card transaction fees? 6. How much of the total sales revenue is expected to be paid with debit cards? 7. How many customer transactions will be paid for by customers using debit cards? 8. When budgeting for January's operating expenses, how much should the restaurant expect to incur in debit card transaction fees? 9. How much money will be deposited in the restaurant's bank account during the month of January related to credit and debit card sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant (there is no processing delay). 10. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from cash, credit card, and debit card sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs. Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Definitive Guide To Blockchain For Accounting And Business

Authors: Saurav K. Dutta

1st Edition

1789738687, 9781789738681

More Books

Students also viewed these Accounting questions