RapidMeal Co. has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together totals $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each 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. Determine the revenues needed to obtain the target net income.
b. How many sales checks are needed to (a) earn a net income of $105,000 and (b) to break even?
c. Determine net income if the number of sales checks is 150,000.

a) 1000000 , b) 125000 & 93750 ,  c) 270000

Explanation:

Target Net profit = 105000

Let profit before tax be p

So, p - 30%p = 105000

0.70p = 105000

p = 150000

Total Net profit = Total revenue - Total cost

Average net profit = Average revenue - average cost. Let no. of customers, or sales checks =x

Total profit / x = 8 - (450000/ x + 3.2)

150000/ x = 8 - 3.2 - 450000/x

150000/x = 4.8 - 450000/x

x (no. of customers needed) = 125000  [b]

a] Total revenue needed = Average revenue x no. of customers needed

= 125000 x 8 =  1000000

b] Customers needed for break even {where TR = TC}

8x = 450000 + 3.2x

x = 93750

c] Net Income if sales checks is 150000 = TR - TC

= 150000 (8) - 450000 - 3.2 (150000) = 1200000 - 450000 - 480000

= 270000

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.