Operations Budgeting and Cost$-$Volume$-$Profit Analysis

Problem $3$

Problem $3$

the approved food operations budget for the Hilotown Restaturant for $2001$ is as fol.

Inforeseen problems beyond the control of the owner $($ongoing terrorism alerts that havesig. ifificantly reduced the tourist travel on which the restaurant relies$)$ have caused a substantial reduction in revenue. In June $($the restaurant operates on a calendar year JanuaryDecember$]$ budget$),$ the owner reforecasted revenues down to $$1,100,000.$

$2.$ What will be the fixed costs under the new budget?

b$.$ Assuming the owner wants to maintain the original "bottom line" profit $($income $[$profit$]$ before taxes$)$ of $$70,000,$ how much in revenues will remain to be spent on variable costs?

c$.$ Assuming the owner is willing to breakeven on the restaurant's operation, how much in revenues will remain to be spent on variable costs?