Question: Pricing Using the Hubbart Formula Restaurant has 150 seats and expects to average 2.5 turns a day. They are open 6 days a week

Pricing Using the Hubbart Formula Restaurant has 150 seats and expects to average 2.5 turns a day. They are open 6 days a week all year. The owner wants to earn a 12% after tax return on the invested assets of $450,000. Income tax rate: Depreciation: 40% straight line (8 years) on assets of $500,000 (salvage of $25,000) Other fixed expenses: $75,000 8% on balance owing of $350,000 Variable costs: 75% of sales Mortgage interest: Mortgage principal: Annual principal payment required: $12,000 Vending machines make $5,000 per year. Required: (a) (b) Calculate the break-even sales for the restaurant. Calculate the average check using the information above and the Hubbart Formula..

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