accounting 2 week 3

accounting 2 week 3 - potentially serve 56 meals per day 4...

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Accounting II – Week 3 1. Compute the annual breakeven number of meals and sales revenue for the restaurant. The breakeven point, using the contribution margin approach, is 5000 meals and revenue of \$225,000. Sales revenue - variable costs = contribution margin. Subtract fixed costs from contribution margin = operating income. 2. Also compute the number of meals and the amount of sales revenue needed to earn operating income of \$75,600 for the year. We are given operating income of \$75,600 Meals = 7,520 * 30= \$225,600 / 7,520 meals = 30 Revenue = 7,520 * 45=\$338,400 3. How many meals must the Homs serve each night to earn their target income of \$75,600? The Homs must serve 30.08 meals, rounded to: 31 meals, each night to reach their target income. They can
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Unformatted text preview: potentially serve 56 meals per day. 4. Should the couple open the restaurant? Hours of operation include: 50 weeks 5 days/week = 250 days/year, 28 seats available, and 2 seating’s per evening. The Homs would, at best, booked full for all seating’s, be able to serve 56 daily. If run well the opportunity for success is there and I would feel safe recommending the Hom’s open their Thai restaurant. *Need to serve 7520 / 250 = 30.08 meals per day (31 meals to achieve goal since you cannot sell .08 meals) 28 seats available, 2 seating’s daily = 56 potential meals per day....
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