Juan Monserrate Ordoez is the owner and manager of the SEA SHORE Restaurant in Cabo Rojo....

 

Transcribed Image Text:

Juan Monserrate Ordoñez is the owner and manager of the SEA SHORE Restaurant in Cabo Rojo. Monthly fixed costs are $17,000. It serves lunch and dinner. The dishes at the Dinner are much more exclusive. The average bill is $72.00 per person. This price does not include taxes or gratuities. It is estimated that the variable cost per average dish is $38.00 per dish. Required 1. 2. 3. 4. Determine the number of dishes you would have to sell to earn an operating income of $25,000 per month. Determine the number of dishes you would have to sell to earn a net income - Net Income of $25,000 per month, if the tax were 30%. Determine the tie point in units and dollars. Presume that at SEA SHORE Restaurant, rent and other fixed costs increased to $50,840 and variable cost also increased to $42.80 per dish. The average price per dish as a result of cost increases is now $80. How many dishes are now needed, to reach an operating income of $25,000 per month? 5. Juan Monserrate Ordoñez's accountant warns you that with price and cost changes made in #4 above, you can lose 15% of customers. If this projection of losing customers is met, how would the Restaurant's operating income calculated in required 4 be affected? Juan Monserrate Ordoñez is the owner and manager of the SEA SHORE Restaurant in Cabo Rojo. Monthly fixed costs are $17,000. It serves lunch and dinner. The dishes at the Dinner are much more exclusive. The average bill is $72.00 per person. This price does not include taxes or gratuities. It is estimated that the variable cost per average dish is $38.00 per dish. Required 1. 2. 3. 4. Determine the number of dishes you would have to sell to earn an operating income of $25,000 per month. Determine the number of dishes you would have to sell to earn a net income - Net Income of $25,000 per month, if the tax were 30%. Determine the tie point in units and dollars. Presume that at SEA SHORE Restaurant, rent and other fixed costs increased to $50,840 and variable cost also increased to $42.80 per dish. The average price per dish as a result of cost increases is now $80. How many dishes are now needed, to reach an operating income of $25,000 per month? 5. Juan Monserrate Ordoñez's accountant warns you that with price and cost changes made in #4 above, you can lose 15% of customers. If this projection of losing customers is met, how would the Restaurant's operating income calculated in required 4 be affected?

Answer rating: 100% (QA)

Lets address each of the required calculations 1 To determine the number of dishes to earn an operat... View the full answer