The Rapid Feast has two restaurants that are open 24 hours a day. Fixed costs for...

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The Rapid Feast has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $509,000 per year. Service varies from a cup of coffee to full meals. The average sales bill per customer is $9.50. The average cost of food and other variable costs for each customer is $3.80. The income tax rate is 30%. Target net income is $122,500. Required 1. Compute the revenue needed to earn the target net income. 2. How many customers are needed to earn net income of $122,500? How many customers are needed to break even? 3. Compute net income if the number of customers is 135,000. The Rapid Feast has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $509,000 per year. Service varies from a cup of coffee to full meals. The average sales bill per customer is $9.50. The average cost of food and other variable costs for each customer is $3.80. The income tax rate is 30%. Target net income is $122,500. Required 1. Compute the revenue needed to earn the target net income. 2. How many customers are needed to earn net income of $122,500? How many customers are needed to break even? 3. Compute net income if the number of customers is 135,000.

Answer rating: 100% (QA)

To solve these questions well use some basic accounting and financial analysis Lets break down each part step by step 1 Compute the revenue needed to ... View the full answer