Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Matteo has a sales mix of 70 percent food and 30 percent beverage and CMR of 0.5 and 0.8 respectively. The annual fixed costs

The Matteo has a sales mix of 70 percent food and 30 percent beverage and CMR of 0.5 and 0.8 respectively. The annual fixed costs of the restaurant are $375,000. What is the breakeven number of guests if Matteo can command a $100 average guest check?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To find the breakeven number of guests we can use the breakeven formula Fixed Costs Contribution Mar... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

More Books

Students also viewed these Accounting questions

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago

Question

What is job enlargement ?

Answered: 1 week ago

Question

What is the CVP relation?

Answered: 1 week ago