Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a the barcelona restaurant has 120 seats and opens

a The Barcelona Restaurant has 120 seats and opens 360 days a year. The construction...

90.2K

Verified Solution

Question

Accounting

image

a The Barcelona Restaurant has 120 seats and opens 360 days a year. The construction and start-up costs amount to $8,000,000. The owner has $6,000,000 in cash that will be invested into the restaurant. The owner has a loan of $2,000.000 at an interest rate of 12%. The owner expects a 12% return on investment annually. The income tax rate is 30%. The estimated fixed charges and costs (excluding income taxes) is $1,500,000. The undistributed expense is $500,000. The forecasted food cost is $750,000. The projected average seat turnover is 2.5. Given the above information, use the Hubbart Formula to calculate the minimum average check. Answer the following questions, 1. What is the desired Net Income? 2. What is the Total fixed costs and charges? 3. What is Contribution Margin? 4. What is the Total Revenue? 5. What is Average Check per cover

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students