The Express Meal has two restaurants that are open $24$ hours a day. Fixed costs for the two restaurants together total $$400,000$ per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $$8\mathrm{.}50.$ The average cost of food and other variable costs for each customer is $$3\mathrm{.}50.$ The income tax rate is $30\%.$ Target net income is $$140,000.$

Requirements

Compute the revenues needed to earn the target net income.

How many customers are needed to break even? To earn net income of $$140,000?$

Compute net income if the number of customers is $150,000.$

Requirement $1.$ Compute the revenues needed to earn the target net income.

Using the equation method, select the basic formula used to compute the revenues needed to earn the target net income.

Revenues

Variable costs

Fixed costs $=$ Target net income

$1-$ Tax rate

The revenues needed to earn the target net income is

Requirement $2.$ How many customers are needed to break even? To earn net income of $$140,000?$

Determine the formula that is used to compute how many customers are needed to break even, then compute the number of customers needed.

$\backslash$table$[[$Fixed costs,$+$ Contribution margin per customer,$=$ Customers needed to break even,$],[$$$400,000,+$$$\mathrm{.}00,=,80,000]]$

Determine the formula that is used to compute how many customers are needed to earn net income of $$140,000,$ then compute the number of customers needed.

$\backslash$table$[[,$Total revenues,$4^{+},$Sales check per customer,$=$Customers needed to earn $$140,000$