You plan to open a restaurant and have specific information about the operation. You still need to research data to complete a pro forma income statement to finalize a request for additional investment capital. You know that your operation has 150 seats. Based upon current experience, you will run at about 75% occupancy. You plan to be open 360 days a year for both lunch and dinner. You project your food cost to be 35%, and your total labor costs to average 32%. You anticipate additional variable costs to average 9%. Your lease agreement remains constant at $6,000 per month. Fixed costs average $3,000 on a monthly basis.

You project that the dining room fills up one time for lunch Monday through Wednesday and twice Thursday through Sunday. The dinners should be busier. Since the meal period is longer, you anticipate the dining room to turn over twice Monday through Wednesday and three times Thursday through Saturday. Sunday night is your slowest shift, with the dining room filling up only once.

Your concept is a casual theme operation with competition similar to Chilis, Outback Steakhouse, and Olive Garden. To complete your income statement, you need to research the lunch and dinner check averages of restaurants in your market and decide what sales numbers (per person check average) to use for your projections.

Since all of your projections are based on your most likely costs and sales volume estimates, you need to develop three projections for revenues, one being more conservative and another being more aggressive than your most likely estimates. You expect your check averages, variable costs, and fixed costs to remain constant.

Based on the criteria above, complete three pro forma income statements. Determine the break-even point in revenue for your operation based upon the three statements. Perform all of the work in Excel.