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3. The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100. a. Compute the revenues needed to earn the target net income. b. How many customers are needed to break even? c. Compute net income if the number of customers is 170,000. (40 POINTS) 3. The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100. a. Compute the revenues needed to earn the target net income. b. How many customers are needed to break even? c. Compute net income if the number of customers is 170,000. (40 POINTS)

Answer rating: 100% (QA)

a To compute the revenues needed to earn the target net income we can use the following formula Net income Revenue Variable costs Fixed costs Income t... View the full answer