Company G has the following projections and financial goals for their cafe next year. The company has invested $425,000 in a Cafe that seats 100, with an expected average turnover of 2. The Cafe is expected to be open 6 days a week, 52 weeks a year. The company would like to see a 7% after tax return on its investment this year. The company faces a tax rate of 19%. There are many costs involved in running a cafe. Estimates include that variable costs will use up 60% of the revenue earned by the business. Annual fixed costs would be as follows: Salaries: $125,000 Insurance: $22,000 Maintenance: $8,000 Utilities: $28,000 Also, depreciation on the building itself would be 8% of the buildings $200,000 book value. Part of the companies investment in the business came through a bank loan of $125,000, of which he will be paying 8% interest per year. 

REQUIRED: 

Based on the information provided, fill in the blanks. To complete your answers please follow the instructions: Round up or down to keep TWO DECIMALS accordingly. i.e. 1.234 would be rounded to 1.23 whereas 1.235 would be rounded to 1.24 

• A net income of $ must be earned to achieve the desired rate of return. A pretax profit of $ must be earned to achieve the desired rate of return. while the fixed costs 

• The given fixed and undistributed costs add up to $ requiring calculation add up to $ undistributed costs are $ Added together, the total fixed and 

• To earn the required net income, a Gross Profit of $ must be achieved. 

• Total revenue of $ must be achieved to earn the required net income. 

• Total variable costs are $

• The average check of $ must be earned to achieve the desired rate of return.

Answer rating: 100% (QA)

a A net income of 14125 must be earned to achieve the desired rate of return To calculate multiply t... View the full answer