Quick bites has a restaurant that is opened all day. Fixed costs total $450,000 per...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Quick bites has a restaurant that is opened all day. Fixed costs total $450,000 per year. Service varies from a cup of coffee to full meals. The average sale per customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The Income Tax rate is 30%. Target Net Income is $105,000.
(a) Compute the revenues needed to earn the target net income. (5 marks)
(b) (i) How many customers are needed to break-even? (2 marks) (ii) How many customers are needed to earn a net Income of $105,000? (3 marks)
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: Zin AI - Your personal assistant for all your inquiries!
