What sale revenue would restaurant have to achieve next year

Assignment Help Financial Accounting

Reference no: EM132774335

Problem 1: You have the following projections about the costs in a family restaurant for next year. Net income required is 22% on the owner's present investment of $80,000. The income tax rate is 28%. The variable costs breakdown is as follows: food cost 38% of sales revenue, wage cost 34% of sales revenue and other costs 12% of sales revenue. Total fixed costs are $86,900.What sales revenue (in $, round to the nearest integer, no decimals) would the restaurant have to achieve next year in order to acquire the desired net income?

Option 1: $ 695,903

Option 2: $ 638,025

Option 3: $ 1,148,444

Option 4: $ 114,844

Option 5: $ 908,084

Reference no: EM132774335

Questions Cloud

What should be the strike price of the put option : What should be the strike price of the put option and the face value of the riskfree bond in the replicating portfolio? What should be the maturity of the bond?

Guest service associate at front desk of large : You are working as a guest service associate at the front desk of a large, downtown hotel.

What is the total conversion cost : In the manufacture of 9,500 units of a product, direct materials cost incurred was $177,500, What is the total conversion cost

Describe the programmer would then do market research : This project should include what it takes to create an application for a mobile deivce. In this day and age we utilize phone applications on a daily basis.

What sale revenue would restaurant have to achieve next year : What sales revenue (in $, round to the nearest integer, no decimals) would the restaurant have to achieve next year in order to acquire the desired net income?

P and g and wal-mart relationship : Muccio came out with actions to renegotiate the P&G and Wal-Mart relationship and had grouped them in 6 categories.

Make the entries on the appropriate dates : The dividend is paid on December 31. Make the entries on the appropriate dates to record the declaration and payment of the cash dividend

Make schedule of cost of goods manufactured for april : Prepare schedule of cost of goods manufactured for April. Assume that the beginning balance in the materials account was $1,400

What are the possible pitfalls of end user inclusion : Search "scholar.google" for a company or school that has defined the role of end-users in the creation of a contingency plan. Discuss why it is (or is not).

User Account

All Pages