Business, 07.04.2020 22:29 nashaflores17
You have the following projections about the costs of a family restaurant for next year: - Net income after tax required: $1,250,000 - Tax rate: 36%. - Depreciation: $38,000 - Interest: 12,000 - Other fixed charges: 150,000 - Total variable costs (including food, labor, and others): 65%Known Costs Variable CostsInsurance $ 3,000 Food cost, 36% of sales revenueLicense 2,500 Wage cost, 34% of sales revenueUtilities 8,400 Other costs, 12% of sales revenueMaintenance 3,600Administration 9,800Salaries 32,400a. What sales revenue would the restaurant have to achieve next year in order to acquire the desired net income after tax?b. What is the required average check needed to achieve the annual revenue objective if the restaurant is open 365 days, had 60 seats, and had an average seat turnover of 2.5 times per day?
Answers: 1
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You have the following projections about the costs of a family restaurant for next year: - Net incom...
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