What is the level of sales needed to achieve a 12% ROI on an investment of...
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What is the level of sales needed to achieve a 12% ROI on an investment of $9,000,000 while covering all costs for the following restaurant? 2. What is the Net Income required? 3. What is the Pre-tax Income? 4. What is the CMRw? 5. What are the sales required to cover all costs and profits? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 What is the level of sales needed to achieve a 12% ROI on an investment of $9,000,000 while covering all costs for the following restaurant? 2. What is the Net Income required? 3. What is the Pre-tax Income? 4. What is the CMRw? 5. What are the sales required to cover all costs and profits? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000
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To calculate the various financial metrics for the restaurant lets break down the information and calculate each value step by step Return on Investme... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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