If revenue from a sale was $4,800 and variable costs were $2,304, what is the variable cost
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E8.1 A restaurant has sales revenue of $240,000, fixed costs of $100,800, and variable costs of $96,000. What is breakeven sales revenue? (1.5 points)
E8.4 A restaurant has fixed costs of $40,000 for the month of March 0002. The average check is $12.50 with an average variable cost of $7.50. What is breakeven units of sales for the month of March? (1.5 points)
E8.6 A restaurant has an average check of $12.95, with an average variable cost of $5.44. Fixed costs are $140,000. Calculate the following: (5 points)
a. What is the unit contribution margin?
b. What are breakeven units?
c. What is the variable cost percentage?
d. What is the contribution as a percentage?
e. What is breakeven sales revenue?
P8.1 A restaurant with an average check of $10 per guest has the following average monthly figures:
Sales revenue $500,000
Variable costs 260,000
Fixed costs 160,000
a. What is breakeven sales revenue? (1.5 points)
b. If actual sales revenue was $440,000, what would the restaurant's operating income be? (2 points)
P8.6 A 90-room motel has an average room rate of $65.60. Its fixed costs are $300,000 a year, and its variable costs total $476,000 at an average occupancy of 70 percent.
a. What is the motel's breakeven occupancy percentage? (1.5 points)
b. What level of sales revenue is required to provide an operating income (before taxes) of $100,000 a year? (1.5 points)
P8.7 The Relax Inn's rooms department has annual sales of $600,000 and variable costs of $180,000. The inn's food department has annual sales revenue of $200,000 and variable costs of $160,000. The inn's fixed costs are $220,000. The total sales revenue of the inn is $800,000 jointly.
a. Calculate the inn's breakeven point, assuming the ratio of room's sales to food sales remains constant at any level of total sales (2 points)
b. The owners want to increase their restaurant's sales revenue, and they plan to spend $1,000 on brochures to be displayed in the inn's entry lobby and in the guest rooms. What level of incremental food sales must be achieved to cover the brochure cost? (Assume that room sales remain constant.) (1.5 points)
c. If the inn's owners want to increase operating income by $40,000 by increasing rooms occupancy rate, what is the incremental room's sales revenue required to support the $40,000 increase to operating income? (Assume no effect on restaurant sales.) (1.5 points)
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