• 150-seat restaurant
• $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital
• The owners have 6,000,000 in cash and borrow the rest from the bank at 5%
• The projected average seat turnover is 2 (use 320 days open in a year)
• The stockholders require a 15% return on their investment annually
• The restaurant pays income taxes at the rate of 25%
• The restaurants estimated undistributed expenses, not including income taxes, total $2,000,000
• The forecasted cost of food sold and variable labor is 50 percent of sales

Q. What is the required average dinner check?