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11. The owner of the Barn Lodge Restaurant estimates that fixed costs for the coming...

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Accounting

11. The owner of the Barn Lodge Restaurant estimates that fixed costs for the coming year will be $360,000. Based on his investment in the business, he wants a profit of $120,000 for the year. Experience has shown that the average check is $12.00. a. If total variable cost is $720,000, what level of dollar sales will be required to earn the target restaurant profit? b. Given total variable cost and total sales figures calculated in Question 11a, what variable rate is the owner projecting? c. Given the variable rate calculated in Question 11b, determine the contribution rate. d. Given the contribution rate calculated in Question 11c, determine the average contribution margin based on a $12.00 average sale. e. At what level of dollar sales will the restaurant break even?

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