Essay
The Eastman Family Restaurant is open 24 hours per day.Fixed costs are $24,000 per month.Variable costs are estimated at $9.60 per meal.The average revenue is $12 per meal.The restaurant wished to earn a profit before taxes of $6,000 per month.
Required:
A) Compute the number of meals that must be served to earn a profit before taxes of $6,000 per month.
B) Assume that fixed costs increase to $30,000 per month. How many additional meals must be served to earn a profit before taxes of $6,000 per month?
Correct Answer:
Verified
A)($24,000 + $6,000)/($12.00 -...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q15: Selling expenses are found in the cost
Q16: Wehr Corporation produces one product.Total fixed costs
Q17: Nealy Company has the following information
Q18: Stefanko Manufacturing has prepared the following
Q19: An assumption of the CVP analysis is
Q21: If a company faces declining sales over
Q22: Contribution margin is equal to _.<br>A) sales
Q23: The vertical axis on the cost-volume-profit graph
Q24: Assume the sales price is $100 per
Q25: A change in the tax rate will