The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for
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The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income tax rate is 36%. Target net income is $117,600.
Required
1. Compute the revenues needed to earn the target net income.
2. How many customers are needed to break even? To earn net income of $117,600?
3. Compute net income if the number of customers is 170,000.
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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