You have been provided with the following projections regarding the costs of a fast fast food...
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You have been provided with the following projections regarding the costs of a fast fast food restaurant for the next fiscal year: Desired after tax net income as a % of investment Owners equity investment in the business Present book value of furnishings & equipment Depreciation rate on furnishings & equipment Present bank loan balance Interest rate on bank loan Insurance expense Business license expense Energy costs Miscellaneous Wages Food cost as a % of sales Variable wage cost as a % of sales Other variable costs as a % of sales Seat in the restaurant Current income tax rate Operational days opened (closed Christmas) Daily average seat turnover 15% 160,000 130,000 20% 80,000 9% 5,750 3,275 11,600 63,675 34% 26% 9% 135 33% 364 2.9 *Calculate the revenue required for this restaurant to cover all costs next year and achieve it's profit objectives. *Calculate the restaurant's average check required to reach it's profit objectives. You have been provided with the following projections regarding the costs of a fast fast food restaurant for the next fiscal year: Desired after tax net income as a % of investment Owners equity investment in the business Present book value of furnishings & equipment Depreciation rate on furnishings & equipment Present bank loan balance Interest rate on bank loan Insurance expense Business license expense Energy costs Miscellaneous Wages Food cost as a % of sales Variable wage cost as a % of sales Other variable costs as a % of sales Seat in the restaurant Current income tax rate Operational days opened (closed Christmas) Daily average seat turnover 15% 160,000 130,000 20% 80,000 9% 5,750 3,275 11,600 63,675 34% 26% 9% 135 33% 364 2.9 *Calculate the revenue required for this restaurant to cover all costs next year and achieve it's profit objectives. *Calculate the restaurant's average check required to reach it's profit objectives.
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CALCULATION OF CONTRIBUTION RATIO a Particulars of Sales Sales 100 Less Variabl... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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