The Swift Feast has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $451,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.20. The average cost of food and other variable costs for each customer is $4.10. The income tax rate is 30%. Target net income is $114,800. Using the equation method, select the basic formula used to compute the revenues needed to earn the target net income. Variable costs = Target net income Revenues Fixed costs 1 - Tax rate The revenues needed to earn the target net income is $ 1,230,000. Requirement 2. How many customers are needed to break even? To earn net income of $114,800? Determine the formula that is used to compute how many customers are needed to break even, then compute the number of customers needed. Contribution margin per customer Fixed costs 451,000 $ 4.10 = Customers needed to break even = 110,000 Determine the formula that is used to compute how many customers are needed to earn net income of $114,800, then compute the number of customers needed. Total revenues 1,230,000 + Sales check per customer 8.20 = Customers needed to earn $114,800 150,000 Requirement 3. Compute net income if the number of customers is 170,000. Determine the formula that is used to compute the net income when the number of customers is 170,000, then compute the net income. Change in net income + Original target net income = Net income +