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  1. business
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  3. 1. what is the required revenue to satisfy the fo

1. What is the required revenue to satisfy the following conditions? Contribution margin per unit = $4,...

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Accounting

  1. 1. What is the required revenue to satisfy the following conditions? 
  2. Contribution margin per unit = $4, breakeven (operating income = $0), fixed cost = $18,000, average variable cost per unit = $12


  2. 2. A 100-seat restaurant with average daily turnover of 2 and average check of $15 opens 365 days a year. Total variable costs are 438,000. Fixed costs are $636,000 a year.
  1. How much is the current operating income?

  1. What is the variable rate?

  1. 3. The owner wants to increase the operating income. She decides the best way is to join a national franchise. The franchisor requires a fixed loyalty fee of $20,000 a year and 3% of the revenue to be contributed to the national marketing program. How much revenue does the restaurant have to generate to achieve an operating income of $300,000?

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